Why Do Fraud Investigations Initially Involve Few People and Avoid

question 19

Multiple Choice

Why do fraud investigations initially involve few people and avoid the word "investigation?"

• A) To avoid alerting suspects about the investigation
• B) To avoid incriminating innocent people
• C) To avoid unnecessary stress or suspicion among employees
• D) All of the above

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Definitions:

Voting Stock

Shares that grant the holder the right to vote on company matters, typically influencing board elections and corporate policy.

Cash Dividend

A payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Net Income

The income a company retains following the deduction of all costs and taxes from its total earnings.

Goodwill

An intangible asset that arises when a company acquires another business for more than the value of its tangible and identifiable intangible assets.