What Is the Purpose of the Net Worth Calculation in Fraud

question 58

Multiple Choice

What is the purpose of the net worth calculation in fraud?

• A) It is used to determine the extent of stolen funds
• B) It is used to determine how much money can be stolen without causing a company to go bankrupt.
• C) It is used to help locate fraudulent asset accounts
• D) All of the above

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Definitions:

Agents

Individuals or entities authorized to act on behalf of another (the principal) in dealings with third parties, typically creating a legal or business relationship.

Sole Proprietorships

A simple business structure where a single individual owns and operates the business.

Action Against Directors

Legal proceedings initiated to hold directors of a company responsible for their actions or omissions that harm the company or its stakeholders.

Preferred Shares

A type of stock that offers dividends at fixed rates before any dividends can be issued to common shareholders and typically does not carry voting rights.