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1. Which of these is true about kickback schemes? a. They typically start as legitimate non-fraudulent...

1. Which of these is true about kickback schemes?
a. They typically start as legitimate non-fraudulent transactions.
b. They involve charging lower than market prices for items with differences split among scheme participants.
c. They typically start by over-ordering quantities and the move to buying at lower prices to justify the large quantities.
d.They typically start in firms that have no threshold pricing variance reports.

2. A scheme involves a victim company that enters into a transaction that benefits employee but that benefit is not disclosed. This is an example of .............?
a. kick back scheme
b. conflict of interest
c. economic extortion
d. diverting schemes
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Answer #1

1. Actually Kickback is a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange of services rendered. The main purpose of kickback is usually to encourage the other party to cooperate in the illegal scheme. As we all know any illegal activities start as non- fraudulent transactions. Therefore i conclude that kickback schemes typically start as legitimate non-fraudulent transactions.

2. Kick back scheme

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