When Only a Very Small Amount of Money Has Been

question 2

Multiple Choice

When only a very small amount of money has been embezzled:

• A) taking no action is the best course of action.
• B) the perpetrator should be punished by publishing the details of the fraud in the local newspapers.
• C) the perpetrator should be prosecuted.
• D) the company should transfer the perpetrator to a position with more supervision.

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Definitions:

Profit Margin

An indicator of a company's profitability, measured by dividing net income by revenue, and expressing the result as a percentage.

Total Asset Turnover

A measure of how efficiently assets are employed by a company to generate revenue from sales.

Equity Multiplier

A financial ratio that measures a company's total assets financed by its shareholders' equity, indicating leverage level.

Return On Equity

A measure of a corporation's profitability, indicating how much profit a company generates with the money shareholders have invested.