Almost All Ongoing Frauds Schemes, No Matter How Sophisticated, Have

question 12

Multiple Choice

Almost all ongoing frauds schemes, no matter how sophisticated, have one weakness in common:

• A) The perpetrator is subject to being caught in the act.
• B) The fraud can be detected through financial statement analysis.
• C) The burden of proof is on the fraudster.
• D) Law enforcement can arrest the fraudster at anytime.

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Definitions:

Boom Economy

A period characterized by rapid economic growth, significant increases in jobs, and elevated consumer spending.

Recessionary Period

A period of economic decline during which trade and industrial activity are reduced, typically recognized by a fall in GDP in two successive quarters.

Standard Deviation

A measure of the dispersion or variability in a set of data points or investment returns, indicating how much variation exists from the average.

Expected Return

The anticipated average return of an investment over a given period, factoring in all possible outcomes.