Use the Fact Situation in Q2 to Answer the Related

question 22

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. One major concern that A and B will have related to carrying on their business over the Internet is

• A)identity theft.
• B)public safety.
• C)fraud.
• D)money laundering.
• E)tax evasion.

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Definitions:

Racketeer Influenced and Corrupt Organizations Act

A federal law aimed at combating organized crime in the United States by facilitating extended penalties for acts performed as part of a criminal organization.

Violation

The act of disobeying or acting against a law, rule, agreement, or code of conduct.

Imprisonment

The act of confining someone in a prison or other facility as a form of punishment following conviction for a crime.

Section 11

A provision of the Securities Act of 1933 that holds issuers liable for providing false statements in their registration statements, designed to protect investors.