Technopreneurship 2nd PDF

Question 1

Fraudulent or deceptive schemes

Answer 1

Scam

Question 2

Deceptive scheme or trick used to cheat someone out of something, especially money.

Answer 2

Scam

Question 3

A type of financial fraud in which people pay to join an organization in exchange for the right to sell memberships to other people.

Answer 3

Pyramid Scheme

Question 4

All pyramid schemes eventually collapse, and most investors lose their money.

Answer 4

Pyramid Scheme

Question 5

Closely related to a pyramid scheme but the promoter generally has no product to sell and pays no commission to investors who recruit new members.

Answer 5

Ponzi Scheme

Question 6

A fraudulent scheme that involves paying existing investors in a nonexistent enterprise with the funds collected from new investors.

Answer 6

Ponzi Scheme

Question 7

The term “Ponzi Scheme” was coined after a swindler named

Answer 7

Charles Ponzi in 1920

Question 8

This often promise to invest your money and generate high
returns with little or no risk.

Answer 8

Ponzi Scheme

Question 9

A name for a type of scam that targets members of a specific demographic. Perpetrators may attempt to relate to or exploit characteristics common to the demographic. Targeted groups can
include the elderly, ethnic groups, and religions.

Answer 9

Affinity Fraud

Question 10

These scams exploit the trust and friendship that exists in groups of people. Because of the tight-knit structure of many groups, outsiders may not know about the affinity scam.

Answer 10

Affinity Fraud

Question 11

Victims may try to work things out within the group rather than notify authorities or pursue legal remedies.

Answer 11

Affinity Fraud

Question 12

This often involve “Ponzi” or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.

Answer 12

Affinity Fraud

Question 13

Means imposing unfair, deceptive, or abusive loan terms on borrowers.

Answer 13

PREDATORY LENDING

Question 14

Often use aggressive sales tactics and exploit borrowers’ lack of understanding of financial transactions.

Answer 14

PREDATORY LENDING

Question 15

is the archetypal example of a predatory lender—someone who loans money at an extremely high-interest rate and may even threaten violence to collect on their debts.

Answer 15

Loan Shark

Question 16

This includes any unscrupulous practices carried out by lenders to entice, induce, mislead, and assist borrowers toward taking out loans they are unable to pay back reasonably or must pay back at a cost that is extremely above the market rate.

Answer 16

PREDATORY LENDING

Question 17

substantial payment at the end of a loan’s term.

Answer 17

Balloon payment

Question 18

lender pressures a borrower to refinance, again and again, generating fees and points for the lender each time.

Answer 18

Loan flipping

Question 19

lender grants a loan based on your asset, say a home or a car, rather than on your ability to repay the loan.

Answer 19

Asset-based lending and equity stripping

Question 20

Lenders steer borrowers into expensive subprime loans, even when their credit history and other factors qualify them for prime loans.

Answer 20

Steering

Question 21

Fraudsters typically spread false or misleading information to create a buying frenzy that will “pump” up the price of a stock and then “dump” shares of the stock by selling their own shares at the
inflated price

Answer 21

Pump and Dump Schemes

Question 22

False or misleading information about a company’s stock price may be spread through sources including social media, investment research websites, investment newsletters, online advertisements, email, Internet chat rooms, direct mail, newspapers, magazines, and radio.

Answer 22

Pump and Dump Schemes