Which of the Following Creates an Opportunity for Fraud to Be

question 107

Multiple Choice

Which of the following creates an opportunity for fraud to be committed in an organization?

• A)Management demands financial success.
• B)Poor internal control.
• C)Commitments tied to debt covenants.
• D)Management is aggressive in its application of accounting rules.

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Definitions:

Mixed Strategies Equilibrium

is a concept in game theory where each player in a game chooses a combination of actions and their associated probabilities to maximize their utility under uncertainty.

Equilibria

The state of balance in a market or other system where supply and demand are matched, and there is no tendency to change.

Dominant Strategies

In game theory, a strategy that is the best choice for a player, regardless of what the opposing player chooses.

Annual Profit

Annual profit is the financial gain a company or individual achieves in a fiscal year after all expenses, taxes, and costs have been subtracted from total revenue.