Ask Question
BusinessBusiness
1 March, 01:55

Heidi decided to make extra money by offering to do investments for her friends for a fee. She actually did no investing, but used the fundsfrom new friends to pay off earlier enrollees. This worked well for a while, but her scheme came to light when her supply of new friends came to an end. She is guilty of which of the following practices? A. Operating a Ponzi scheme B. Operating a bait and switch scheme C. Account kiting D. Pretexting E. Defalcation

+2
Answers (1)
  1. 1 March, 05:33
    0
    Answer: Option (A)

    Explanation:

    A Ponzi scheme is referred to as or known as a type/form of a fraud that tends to bait investors and thus pays high profits to the earlier investors with the funds gained or received from recent investors. This scheme tends to lead its victims and other individuals to perceive that these profits are collected from the sales or via other means, thus they tend to remain completely unaware that the investors after them are reason of these funds.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Heidi decided to make extra money by offering to do investments for her friends for a fee. She actually did no investing, but used the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Brent files a return as married filing jointly. In 2019, he had the following items: • Salary of $104,000. • Loss of $105,000 on the sale of § 1244 stock acquired two years ago. • Interest income of $8,000. Brent's capital loss carryforward is:
Answers (1)
A project has an initial cost of $14,500 and produces cash inflows of $4,600, $6,100, and $8,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 15 percent?
Answers (1)
At a particular store, candy bars are normally priced at $1.00 each. last week, the store offered a promotion under which customers purchasing one candy bar at full price could purchase a second candy bar for $0.50. a third candy bar would cost $1.
Answers (1)
The government document that grants permission to establish a corporation is called a
Answers (1)
Since the fall of 2008, millions of americans have lost jobs due to the economic meltdown. a recent study shows that unemployment has not impacted white-collar and blue-collar workers equally (newsweek, april 20, 2009).
Answers (1)
New Questions in Business
Members should use the AICPA conceptual framework for independence to: a) come to different conclusions than the interpretations of the code of professional conduct. b) Evaluate independence matters not addressed in the code of professional conduct.
Answers (1)
What is best resource tool for searching the resources of libraries all over the world
Answers (1)
Which of the following statements describe people who have a strong external locus of control? Check all that apply. They are likely to take charge in work settings. They are easy to manage, because they are likely to do what they are told.
Answers (1)
The county commission of canyon county adopted its general fund budget for the year ending june 30, comprising estimated revenues of $13,200,000 and appropriations of $12,900,000.
Answers (1)
JR Computers, a firm that manufactures and sells personal computers is an all-equity firm with 100,000 shares outstanding, $10 million in earnings after taxes and a market value of $ 150 million.
Answers (1)
Home » Business » Heidi decided to make extra money by offering to do investments for her friends for a fee. She actually did no investing, but used the fundsfrom new friends to pay off earlier enrollees.
Sign Up Forgot Password?