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Explain How Fraud Is Different from Other Types of Ethics

question 64

Essay

Explain how fraud is different from other types of ethics violations and detail the three factors that are present every time a fraud is committed. Additionally, explain the special role of management in a fraud situation even if the managers themselves are not consciously participating in the fraud.


Definitions:

Pooling Equilibrium

A situation in game theory where different types with different characteristics choose the same strategy, making it impossible to distinguish between them based on their actions.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

Wage Cut

A reduction in the rate of pay received by an employee.

Quality Distribution

The spread or variance in quality levels among products, services, or outputs within a company or sector.

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