The Most Common Occupational Frauds in Small Businesses Involve Employees

question 38

Multiple Choice

The most common occupational frauds in small businesses involve employees doing all of the following EXCEPT:

• A)skimming revenues.
• B)fraudulently writing company checks.
• C)processing fraudulent invoices.
• D)altering financial statement.

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Definitions:

Maximize Profits

The objective of increasing a company's earnings to the highest possible level.

Product Differentiation

Product differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded at those prices, usually downward sloping.

Marginal Revenue

The change in total revenue that results from the sale of 1 additional unit of a firm’s product; equal to the change in total revenue divided by the change in the quantity of the product sold.