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1. A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:
A) None of the above
B) Embezzlement
C) Conversion
D) Fiduciary Capacity
2. John is a salesperson whose job requires him to entertain potential clients frequently. When John and another salesperson from a different company take a potential client to dinner, the other salesperson pays for the meal.
John creates his own receipt for the meal and submits the expense for reimbursement from his company.
John's scheme can BEST be characterized as:
A) A mischaracterized expense reimbursement scheme
B) A multiple reimbursement scheme
C) An overstated expense reimbursement scheme
D) A fictitious expense reimbursement scheme
3. Which of the following is a red flag of a Ponzi scheme?
A) There is pressure to take payouts rather than reinvest profits.
B) The financial manager manages, administers, and retains custody of investment funds.
C) The investment strategy is very easy to understand.
D) A firm has a history of returns on investments that fluctuate based on market conditions.
4. Which of the following is a recommended activity that organizations should engage in to protect their proprietary information from threats?
A) Maximizing data collection to limit the information available during a data breach
B) Enlisting a task force to identify the information security practices of competitors
C) Prohibiting all nonemployees from entering the organization's premises
D) Conducting confidential meetings in specially constructed quiet rooms
5. Which of the following statements about competitive intelligence is CORRECT?
A) Competitive intelligence is the process of acquiring information for commercial purposes through illegal, covert means.
B) Competitive intelligence uses the same methods to obtain information that corporate espionage uses but focuses on patterns throughout a specific industry.
C) Competitive intelligence refers to government-sanctioned activities conducted to collect protected information from a foreign government.
D) Competitive intelligence aligns with research and development strategies and is often used to anticipate competitors' operating costs and pricing policies.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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