A Characteristic of the Fraud Penalties Is

question 209

Multiple Choice

A characteristic of the fraud penalties is:

• A) When negligence and civil fraud apply to a deficiency, the negligence penalty predominates.
• B) Criminal fraud can result in a fine and a prison sentence.
• C) The criminal fraud penalty is 75% of the deficiency attributable to the fraud.
• D) The IRS has the same burden of proof in the case of criminal fraud than with civil fraud.
• E) None of these.

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Definitions:

Interest Rate Cap

A financial derivative or agreement that limits the maximum interest rate that can be charged on a variable-rate loan or mortgage.

Interest Rate Floor

An agreement in which a lower limit is set on the interest rate that can be paid on a financial obligation.

Collar

A strategy in finance used to limit the range of possible returns on an investment, often by buying and selling options.

Ergonomics

The study and design of work environments to maximize safety, comfort, and efficiency for human use.