Undercover Operations Should Only Be Used When

question 22

Multiple Choice

Undercover operations should only be used when:

• A) Other investigation methods fail.
• B) The results can remain hidden from law enforcement.
• C) Small-scale or irregular fraud is suspected.
• D) A top manager is the suspected perpetrator.

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Definitions:

Payback Period

The duration needed to recoup the expenses of an investment.

Simple Rate of Return

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several investments, calculating net annual profit divided by initial investment cost.

Depreciates Assets

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Discount Rate

The interest rate used to discount future cash flows to present value, often used in investment and project valuation.