Certain Conditions and Circumstances Are Often Present When Management Fraud

question 33

Multiple Choice

Certain conditions and circumstances are often present when management fraud occurs. Which of the following is not such a condition or circumstance?

• A)Unfavorable industry conditions.
• B)Lack of working capital.
• C)High liquidity.
• D)Slow customer collections.

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Definitions:

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its security holders to finance its assets.

Funding Need

The amount of capital required to start or maintain a project, business operation, or investment.