The Fraud Triangle Applies to

question 146

Multiple Choice

The fraud triangle applies to

• A)U.S companies but not international companies.
• B)international companies but not U.S.companies.
• C)U.S.and Canadian companies but not other international companies.
• D)U.S and international companies.

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Definitions:

Stock Split

A corporate action increasing the number of shares issued and outstanding, by issuing more shares to current shareholders proportionally, effectively reducing the price per share.

Common Stockholders

Individuals or entities that own a portion of a corporation's equity and have voting rights based on their share ownership.

Shares Outstanding

The total number of shares of a company's stock that are currently owned by investors, including those held by the public as well as restricted shares owned by the company's insiders and employees.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the open market.