Eddie Dolan Is the Manager of Shipping and Receiving and Has

question 6

Multiple Choice

Eddie Dolan is the manager of shipping and receiving and has been working at the UFA Company for twenty years. He rarely calls in sick and gets good performance reviews every year. For the past year, his wife's company, ABC Co., has been in serious financial trouble. ABC Co. likely will not be able to make the payroll for next month and may have to close down. Which leg of the Fraud Triangle best applies to Dolan's situation?

• A) Motive
• B) Perceived opportunity
• C) Rationalization
• D) Non-sharable financial need

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Definitions:

Cash Dividends

Distributions of a company's earnings to its shareholders in the form of cash.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Corporate Form

A legal structure for a business recognized as a separate legal entity from its owners, providing limited liability but facing double taxation.