The Fraud Triangle Has Three Components

question 43

Multiple Choice

The fraud triangle has three components. Which of the components must be present for a fraud to occur?

• A) All factors must be present for fraud to occur.
• B) All factors need not be present.
• C) Fraud can occur if any one of the factors is present.
• D) None of the above

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Definitions:

Average Product

The output per unit of input, calculated by dividing total output by the total quantity of inputs.

Labor

The effort by humans to produce goods or services in exchange for wages or other compensation.

Marginal Product

The additional output produced by using one more unit of a production input, holding all other inputs constant.

Employment

The condition of having a paid job or occupation, involving a contract between an employer and an employee that provides compensation for work performed.