Pressure/incentive Typically Relates To

question 14

Multiple Choice

Pressure/incentive typically relates to:

• A) Situations in which an employee has an unmet substantial financial need.
• B) Opportunity, as without opportunity fraud can become possible.
• C) The employee fabricating an internal moral excuse for the fraud.
• D) Mafia or blackmail situations.

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Definitions:

Option Premium

An option premium is the price that a buyer pays to the seller for an options contract, which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price.

Conversion Price

The predetermined price at which convertible securities can be exchanged for common stock.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.

Par Value

The face value of a bond or a stock, as stated by the issuing company.