Stan Is an Investment Manager

question 76

Multiple Choice

Stan is an investment manager.He has received money from various investors and given them a promise of very high returns on their investments.The invested money is not supplying enough capital to pay the returns promised,so he has started using new investors' money to pay older investors.By advertising and by word of mouth,people are anxious to invest with Stan because of the money being paid,and with the influx of new investors,he is able to continue operating.Stan is

• A) operating an insider-trading operation.
• B) racketeering.
• C) guilty of conspiracy to defraud.
• D) operating a Ponzi scheme.

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Definitions:

Nineteenth-Century Organizations

Describes the structure and characteristics of organizations during the 1800s, often reflecting industrialization and early managerial practices.

Max Weber

A German sociologist, philosopher, and political economist who is considered one of the founders of modern sociology, known for his analysis of the development of Western capitalism and the concept of rationalization.

Political Connections

These are relationships between individuals or organizations and the political realm that can provide advantages in business or personal endeavors.

Managerial Ethics

Principles and standards governing the conduct of managers in their professional actions.