Fraud and corruption

Question 1

Embezzlement

Answer 1

Misappropriation of funds placed in one’s trust or belonging to one’s employer

-It is a form of white-collar crime in which a person or entity misappropriates the assets entrusted to them

Question 1

Embezzlement

Answer 1

Misappropriation of funds placed in one’s trust or belonging to one’s employer

-It is a form of white-collar crime in which a person or entity misappropriates the assets entrusted to them

-The embezzler attains the assets lawfully and has the right to possess them but the assets are then used for unintended purposes

Question 2

Cronyism

Answer 2

The appointment of friends and associates to positions of authority without proper regard to their qualifications

-It creates a sense of entitlement that can cause insubordination and disrespect for management and other employees

-The practice of partially awarding jobs and other advantages to friends or trusted colleagues is especially in politics and supportive organisations

Question 3

Nepotism

Answer 3

The practice among those of power and influence of favouring relative or friends especially by giving them jobs

Question 4

Bribery

Answer 4

Offering someone bribe in a corrupt manner

-Its an illegal or unethical gift given to influence the recipient’s conduct

Question 5

Collusion

Answer 5

Secret agreement between contractors to increase profit margins

Question 6

Fraud

Answer 6

Wrongful deception intended to result in financial or personal gain

Question 7

Corruption

Answer 7

The dishonest conduct by those in power typically involves bribery. Its the misuse of entrusted power for private gain

Question 8

Causes of Fraud and Corruption

Answer 8

-Low levels of democracy

-Low economic freedom

-Poor management information

-Low press freedom