Briefly Describe the Three Components of the Fraud Triangle

question 33

Essay

Briefly describe the three components of the fraud triangle.

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Definitions:

Stockholders

Stockholders, also known as shareholders, are individuals or entities that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.

Stock Dividends

A distribution by a company to its stockholders in the form of extra shares, instead of monetary compensation.

Cash Dividend

A monetary payment paid to shareholders, typically out of the corporation's current earnings or accumulated profits.

Capital Budgeting

The process a business undertakes to evaluate potential major investments or expenditures to ensure profitability.