Describe a Time You or Someone You Know Was Defrauded

question 19

Essay

Describe a time you or someone you know was defrauded or exploited by a company. What kind of scheme did the company use? What bias or heuristic did the company exploit? Was it wrong for the company and its representatives to engage in such practices? How can you make sure you do not fall victim to similar schemes in the future?

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Definitions:

Average Collection Period

The typical time frame for a company to receive dues from its clients for goods or services offered on credit.

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it, and convert the sale into cash.

Cash Disbursements

Money paid out by a company for expenses, operations, or investments.

Accounts Receivable Period

The accounts receivable period is the average number of days it takes for a company to collect payments owed by its customers after a sale has been made.