The U.S. Chamber of Commerce estimated that ____ % of business failures result from employee theft.

The U.S. Chamber of Commerce estimated that ____ % of business failures result from employee theft.

• A. 20
• B. 40
• C. 30
• D. 50

Answer: (C)

Employee theft is a major internal risk that can drive business failure. The commonly cited figure from the U.S. Chamber of Commerce places this issue at about one in three failures, highlighting how theft by insiders can erode cash flow, profits, and trust, and trigger costly investigations and security controls. This makes it a key reason to implement strong internal controls, such as separation of duties, regular audits, and vigilant cash handling procedures. Why this fits best: it aligns with the substantial impact that internal theft has on a company’s viability, rather than suggesting the problem is minor or overwhelmingly dominant. The other options would either downplay the threat or inflate it beyond what the established estimate typically indicates, which is why the one-third figure is the most reasonable match.

Employee theft is a major internal risk that can drive business failure. The commonly cited figure from the U.S. Chamber of Commerce places this issue at about one in three failures, highlighting how theft by insiders can erode cash flow, profits, and trust, and trigger costly investigations and security controls. This makes it a key reason to implement strong internal controls, such as separation of duties, regular audits, and vigilant cash handling procedures.

Why this fits best: it aligns with the substantial impact that internal theft has on a company’s viability, rather than suggesting the problem is minor or overwhelmingly dominant. The other options would either downplay the threat or inflate it beyond what the established estimate typically indicates, which is why the one-third figure is the most reasonable match.