What Type of Fraud Occurs When the Deposits of Current

question 2

Multiple Choice

What type of fraud occurs when the deposits of current investors are used to pay returns on the deposits of previous investors with no real investment happening?

• A) Skimming.
• B) Ponzi Scheme
• C) Channel Stuffing.
• D) Payroll Fraud.

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Definitions:

Patent

A form of intellectual property right that grants the patent holder exclusive rights to an invention for a certain time period, preventing others from making, using, selling, or distributing the patented invention without permission.

Significant Influence

A level of control in an investment, usually signifying the ability to participate in financial and operating policy decisions of the investee without having full control.

Equity Method

An accounting technique used to record investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's net profits or losses.