Which of the Following Is an Example of a Ponzi

question 114

Multiple Choice

Which of the following is an example of a Ponzi scheme?

• A) Ursula pays an advance of $500 to Stan Electronics for a microwave oven, which is not delivered to her as promised.
• B) Harry assumes his father Tom's identity when swiping Tom's credit card for purchases and signing the receipts.
• C) Jenny receives a call from a person selling mobile phones and purchases a phone by giving her financial information to the unknown caller.
• D) Heidi receives an e-mail which offers her an opportunity to share a percentage of millions of dollars.
• E) James invests his funds with Tim who promises James high returns but flees with the remainder of the money after attracting new investors.

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Definitions:

Standard Quantity

The benchmark or predetermined amount of materials expected to be used in the production of a good or service.

Actual Materials

The physical and actual quantities of materials used in the production process.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Actual Output

Actual output refers to the total amount of products or services produced by a company or sector in a given period.