Which of the Following Would Be an Example of Crime

question 11

Multiple Choice

Which of the following would be an example of crime risk?

• A)A bank manager embezzles $1,000,000 from the bank.
• B)A bank that loses $500,000 from trading in foreign currencies.
• C)A $1,000,000 loan given to a business on which no interest and principal has been collected in 2 years.
• D)A bank manager predicts that interest rates will rise.However,interest rates fall causing the bank 's net income to fall by $250,000.
• E)All of the options are examples of crime risk.

---

Definitions:

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.