CHAPTER 5 Criminal Liability

Question 1

Explain White Collar Crime

Answer 1

White collar crimes are characterized by deceit, concealment, or violation of trust. They are committed by
business professionals. They generally involve fraud, and the employees committing the crimes are motivated
by the desire for financial gains or fear of losing business standing, money, or property. Fraud is the
intentional misrepresentation of material facts for monetary gain. This type of crime is not dependent on
threats or violence.

Question 2

What is a pump-and-dump scheme?

Question 3

The crime of larceny includes:

Question 4

. Distinguish between larceny and embezzlement.

Answer 4

Larceny and embezzlement are two forms of theft that can occur within a business. Larceny occurs when a
person unlawfully takes the personal property of another person or a business. For example, if an employee
takes another employee’s computer with the intent of stealing it, he or she may be guilty of larceny. In
contrast, embezzlement occurs when a person has been entrusted with an item of value and then refuses to
return it or does not return the item. For example, if an employee is entrusted with the petty cash at his or her
office and that person purposefully takes some of the money for himself or herself, this would be
embezzlement.

Question 5

What is the Foreign Corrupt Practices Act?

Question 6

Businesses can be charged with crimes.

Question 7

The burden of proof is a criminal case is:

Question 8

Which of the following is a goal of an arraignment?

Question 9

The criminal act necessary to commit a crime is known as:

Question 10

Distinguish between civil and criminal law.