The Phar-Mor Fraud Began When Management

question 49

Multiple Choice

The Phar-Mor fraud began when management:

• A)Forgot to change the budgeted figures that had been incorrectly computed.
• B)Attempted to make the actual net income match the budgeted amounts.
• C)Overstated their expenses to cover amounts embezzled from the company.
• D)Understated the revenue in order to reduce the tax payable to the IRS.

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Definitions:

Mystery Shoppers

Trained researchers hired to pose as customers in order to gather information about the physical appearance or customer service attributes of a store.

Trained Researchers

Individuals with specialized training and expertise in conducting systematic investigations to establish facts or principles in various fields.

Restaurants

Establishments dedicated to the preparation and serving of food and drinks to customers in exchange for money, ranging from quick service to fine dining.

Quantitative Method

A research approach that focuses on gathering and analyzing numerical data and statistical information to understand patterns and predict outcomes.