In One of the Case Studies in the Textbook, Cy

question 12

Multiple Choice

In one of the case studies in the textbook, Cy Chesterly was the vice president in charge of sales for one of the largest machine parts manufacturers in the Midwest. He was an excellent salesman and helped build the company into one of the most successful in the industry. While Chesterly was known to go overboard on the entertainment expenses, he really went wild when it came to buying personal items-vacations, furniture, and jewelry to name a few. What other frauds turned up in the investigation?

• A) Chesterly put his girlfriend on the payroll as a ghost employee.
• B) Chesterly skimmed some of the cash sales.
• C) Chesterly falsified sales figures to collect unearned bonuses.
• D) Chesterly cut special deals to his customers and received kickbacks in return.

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Definitions:

Neighborhood Stores

Retail outlets located within residential areas that cater to the everyday needs of the local community.

Power Center

A large outdoor shopping mall typically composed of a small number of big box retailers and various smaller retailers, combining convenience with a wide range of options.

Anchor Stores

Major retail outlets, usually department stores, that drive foot traffic to smaller retailers within a shopping mall or district.

Shopping Strip

A row of retail stores and service establishments located on a common roadway or block, frequently in suburban areas.