The Best Way to Enact a Broad Fraud-Prevention Program Is

question 74

Multiple Choice

The best way to enact a broad fraud-prevention program is to

• A) Install airtight control systems of checks and supervision.
• B) Name an "ethics officer" who is responsible for receiving and acting on fraud tips.
• C) Place dedicated hot line telephones on walls around the workplace with direct communication to the company ethics officer.
• D) Practice management "of the people and for the people" to help them share personal and professional problems.

---

Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, calculated by discounting future cash flows to the present value.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.

True Cost

The complete expense of a product or service, accounting for all financial, economic, and environmental factors.

All-Stock Deal

A type of corporate acquisition or merger where payment is made entirely in the stock of the acquiring company rather than in cash.