What Is the Opportunity Component of the Fraud Triangle

question 126

Multiple Choice

What is the opportunity component of the fraud triangle?

• A)A person thinks that there is a way to commit fraud without much chance of getting caught.
• B)A person has a really good reason to commit fraud.
• C)A person does not think of the fraudulent activity as bad.
• D)A person persuades two or more other people to assist with the fraud.
• E)A person is concerned about the impact of their actions on society.

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Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.

Pareto Optimal

A state of distributing resources that precludes the possibility of augmenting the status of any participant or preference without detriment to another.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a whole as a result of an economic transaction or activity, without them directly paying for it.

Utility Function

A mathematical representation that describes how consumers rank preferences among different commodity bundles.