Which One of the Following Is an Example of Fraudulent

question 33

Multiple Choice

Which one of the following is an example of fraudulent activities?

• A)Investing in bonds.
• B)Using an accounting method that increases the earnings of the firm
• C)Buying a large part of a new company and then selling it when the price increases
• D)Spreading false rumours about a possible merger.

---

Definitions:

Purported Partners

Individuals who are claimed to be partners in a business, sometimes without the legal or actual basis for such a partnership.

Doctrine of Respondeat Superior

A legal principle that holds an employer or principal liable for the actions of an employee or agent when those actions occur within the scope of employment or authority.

RUPA

The Revised Uniform Partnership Act, which is a set of laws adopted by several states in the United States to govern the formation, operation, and dissolution of partnerships.

For Profit

An organization or activity aimed at making money, rather than serving a charitable or other non-financial goal.