A Division Manager Believes That If He Fails to Meet

question 38

Multiple Choice

A division manager believes that if he fails to meet a very tight budget target, he will be fired. He starts pushing his employees to under-report their hours worked, in order to meet the target. Which element of the fraud triangle is most clearly involved in the division manager's behavior?

• A) Pressures or incentives
• B) Opportunities to commit fraud
• C) Rationalizations
• D) Sociopathic behavior

---

Definitions:

Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Expected Inflation

The rate at which the general level of prices for goods and services is anticipated to rise over a specific period.

Fund Providers

Entities or individuals that supply capital or resources to investments, projects, or businesses.