Fraud Risks Are Higher in E-Commerce Settings Because

question 25

Multiple Choice

Fraud risks are higher in e-commerce settings because:

• A) Personal contact is limited so the personal hurt that is caused is not seen
• B) Fraud can be committed electronically instead of by stealing physical assets
• C) Fraud committed electronically is harder to detect than other types of fraud
• D) E-commerce is new and few fraud detectors are familiar with electronic fraud schemes

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Definitions:

Flawed Units

items that have defects or do not meet the quality standards set by the manufacturer or industry, rendering them less valuable or unsellable.

Substitute Goods

Products or services that can be used in place of each other, satisfying the same consumer needs or desires.

Complementary Goods

Products or services that are used together, where the use or consumption of one enhances the value of the other.

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.