Why Does Organized Crime Thrive

question 114

Multiple Choice

Why does organized crime thrive?

• A) There is great demand for illegal goods and services.
• B) There are few other illegitimate opportunities.
• C) Gang-related killings are on the decline.
• D) It remains extremely difficult to infiltrate the world of legitimate business.

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Definitions:

Implicit Rate

The interest rate inherently included in the lease payments, reflecting the lessor's cost of financing.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease accounting to determine the present value of lease payments.

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from revenue.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, primarily in the United States.