Ch3 Crimes In Sales-Related Occupations Complete Test Bank - Complete Test Bank | White Collar Crime 3e by Payne by Brian K. Payne. DOCX document preview.
Chapter 3: Crimes in Sales-Related Occupations
Test Bank
Multiple Choice
- The success of the economy is tied through relativism to which system?
- retail
- sales
- entertainment
- insurance
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- According to a 2020 National Retail Security Survey, an estimated $61.7
billion was lost in the retail system in 2019 to which of the following?
- high employee turnover
- shrinkage
- loss of business
- the economy
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- Which of the following is an example of employee theft in the retail
system?
- buying goods at a lower price
- not giving customers sale prices
- giving sweetheart deals
- billing for services not provided
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- What type of retail prevention strategies do drug tests and audits fall into,
respectively?
- internal, importation
- Importation, internal
- technological, awareness
- awareness, technological
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
5. How do organizational culture strategies work to prevent employee theft in the retail business?
- With an organized system for employees to anonymously report colleague
wrongdoings, people are more likely to come forward
- With an organized structure, or ladder, with employees and managers always
having someone right above them to hold them responsible for their actions, theft is less likely to occur
- With managers promoting a sense of community in the workplace and
highlighting the company values from the start, employees are less likely to steal
- With police targeting organized crime families who develop large complex
employee theft schemes, employee theft drops on large levels
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
6. Which system attributes the typical young age of its employees and low wages to employee theft?
- insurance
- retail
- sales
- entertainment
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Entertainment/Services System
Difficulty Level: Medium
7. When a restaurant routinely sells its customers smaller portions of food than it advertises, it is engaging in what type of theft?
- adulterating food
- short weighing
- billing for food not provided
- false advertising of prices
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Entertainment/Services System
Difficulty Level: Medium
8. Which of the following are examples of prevention strategies for the restaurant
business?
- inventory control, controlled exits, and inspections
- inventory control, controlled exits, and background checks
- inventory control, anonymous tip lines, and inspections
- background checks, controlled exits, and anonymous tip lines
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Entertainment/Services System
Difficulty Level: Medium
9. To what are the majority of crimes committed in a hotel attributed?
- theft by guests
- fraud
- employee theft
- there is no one major type of crime in hotels
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Hotel Industry
Difficulty Level: Medium
10. How does the sales/service system differ from the retail system?
- Sales system sells all types of goods, whereas the retail system sells luxuries.
b. Retail system sells various goods, whereas the sales system sells basic goods and services.
- They are the same system.
- Retail system sells smaller goods, whereas the sales system sells larger item
in price, like homes.
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Entertainment/Services System
Difficulty Level: Medium
11. What type of auto sales fraud occurs when mechanics and car dealers collaborate to cheat customers?
- price fraud
- odometer fraud
- stolen car fraud
- battery fraud
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Auto Repair/Sales Fraud
Difficulty Level: Medium
12. Who do door-to-door scam artists in the home repair industry target and
why?
- The elderly because they are home during the day and are more vulnerable.
- Women because they are more vulnerable and know less about home
repairs.
- The wealthy because they are less likely to shop around for the best prices.
- The poor because they are more likely to jump at what they think is a good
deal.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
13. Why do home repair frauds fly under the radar as far as the public awareness is concerned?
- It is hard to prove in court because faulty repairs are not the same as
fraudulent repairs.
- It is not as prevalent as fraud in the auto repair industry.
- It is underreported because many times the homeowner does not even know
they have been ripped off.
- Home repair fraud is only dealt with in civil court, and many people cannot
afford the legal fees to hold companies responsible.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
14. Which of the following is not an example of a consequence of home repair fraud?
- additional damage to the home
- additional costs for the homeowner
- stress within the family and on family relationships
- higher insurance rates
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
15. What steps have been taken to reduce the home repair fraud scandals in the United States?
- Criminal laws have been passed in some states.
- The media has tried to increase public awareness.
- Consumer review websites have been made to alert people to fraudulent
companies.
- People do their own home repairs.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
16. Which type of auto repair fraud can go undetected unless the driver has a serious accident?
- billing for services not provided
- airbag fraud
- insurance fraud
- unnecessary repairs
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Auto Repair/Sales Fraud
Difficulty Level: Medium
17. What category of auto repair fraud does enhancing or creating damage fall under?
- unnecessary repairs
- airbag fraud
- insurance fraud
- billing for services not provided
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Auto Repair/Sales Fraud
Difficulty Level: Medium
18. What were the results of Paul Jesilow’s experiment, in which he sought services in over 300 auto repair shops in California?
- Women are more commonly victimized by mechanics.
- Smaller repair shops are more honest than larger repair shops.
- Shops located in cities with a high degree of public awareness about repair
fraud were more honest.
- He found that shops often get consumers to sign documents that relieve
them of liability.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Auto Repair/Sales Fraud
Difficulty Level: Medium
19. Instances of what type of fraud increased in the aftermath of natural disasters?
- auto repairs
- home repairs
- auto sales
- home sales
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
20. The emergence of a legalized marijuana industry in 33 states has brought white-collar crimes to the industry by and against whom?
- customers against other businesses
- marijuana business owners against their customers
- employees against marijuana business owners
- marijuana business owners against other marijuana business owners
Learning Objective: 3-4: Summarize the types of white-collar crime committed in the marijuana sales industry.
Cognitive Domain: Comprehension
Answer Location: Fraud in the Marijuana Sales Industry
Difficulty Level: Medium
21. Why do criminologists rarely study insurance fraud?
- It is not as common as home or auto fraud.
- It is hard to find examples of insurance fraud.
- It is hard to define insurance fraud and many companies are just considered
to have poor deals.
- It is hard to understand and people don’t know they’ve been victimized.
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Crime in the Insurance System
Difficulty Level: Medium
22. Viatical settlement fraud and promissory note fraud are examples of which type of insurance fraud?
- crimes by agents against the company
- investment focused crimes
- crimes by agents against the consumers
- sales-directed crimes against the consumers
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Types of Insurance Crimes by Professionals
Difficulty Level: Medium
23. Insurance fraud occurs when agents misrepresent the types of returns their clients would receive from which type of investment?
- annuities
- promissory notes
- viatical settlements
- insurance plans
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Types of Insurance Crimes by Professionals
Difficulty Level: Medium
24. Embezzlement, forgery, and falsifying account information are all examples
of which type of insurance fraud?
- crimes by agents against the company
- investment focused crimes
- crimes by agents against consumers
- sales-directed crimes against consumers
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Types of Insurance Crimes by Professionals
Difficulty Level: Medium
25. Which type of sales-directed insurance crime is defined as “persuading the
customer to cancel an old policy and replace it with a more expensive ‘better’
policy?”
- stacking
- misrepresentation
- rolling over
- sliding
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Types of Insurance Crimes by Professionals
Difficulty Level: Medium
True/False
- The CEO of a major hiring agency proposed that a rigorous hiring process is
one way that employers can prevent employee theft.
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- Shrinkage refers to the act of downsizing by a business in order to account for
theft by employees
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- Sweetheart deals and shortchanging are examples of fraud that occurs in the
entertainment/services system.
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Comprehension
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
4. Ninety percent of all crimes committed in hotels are due to employee theft.
Learning Objective: 3-2: Explain how theft occurs in the restaurant and
hotel industries.
Cognitive Domain: Comprehension
Answer Location: Crime in the Hotel Industry
Difficulty Level: Medium
5. The legalization of marijuana has increased the crime of underage sales.
Learning Objective: 3-4: Summarize the types of white-collar crime committed
in the marijuana sales industry.
Cognitive Domain: Comprehension
Answer Location: Fraud in the Marijuana Sales Industry
Difficulty Level: Medium
6. Criminal laws made targeting home repair fraud have proved ineffective and
confusing for victims who used to seek retribution in civil court.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
7. Insurance fraud can occur in the sales/services system as a type of repair
fraud.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Comprehension
Answer Location: Home Repair Fraud
Difficulty Level: Medium
8. Unlicensed marijuana businesses are a concern because they may be selling
product that is harmful to users.
Learning Objective: 3-4: Summarize the types of white-collar crime committed in
the marijuana sales industry
Cognitive Domain: Comprehension
Answer Location: Fraud in the Marijuana Sales Industry
Difficulty Level: Medium
9. Insurance fraud is studied thoroughly by criminologists because it is hard for
the public to understand, and people do not typically know if they have been victimized.
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Insurance System
Difficulty Level: Medium
10. Viatical settlement fraud, promissory note fraud, and repair fraud are all
types of fraud found in the insurance system.
Learning Objective: 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Comprehension
Answer Location: Crimes in the Insurance System
Difficulty Level: Medium
Short Answer
- Explain the differences between the retail system and the sales/service
system, as well as provide an example of crime or fraud in each system.
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.; 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Analysis
Answer Location: Employee Theft in the Retail System; Fraud in the Sales/Service System
Difficulty Level: Medium
- Explain the advantages to passing criminal laws targeting home repair fraud.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.
Cognitive Domain: Analysis
Answer Location: Fraud in the Sales/Service System
Difficulty Level: Medium
- Explain the difference between insurance fraud in the insurance system and
auto insurance fraud in the sales/service system.
Learning Objective: 3-3: Discuss the ways in which the home repair and auto sales/service industries commit white-collar fraud.; and 3-5: Explain how insurance fraud occurs and the consequences of crimes in the industry and the public.
Cognitive Domain: Analysis
Answer Location: Fraud in the Sales/Service System; Crimes in the Insurance System
Difficulty Level: Hard
- Explain the factors the contribute to high levels of employee theft in the
restaurant business.
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Analysis
Answer Location: Crimes in the Entertainment/Services System
Difficulty Level: Medium
- Describe two prevention strategies for employee theft in the retail system.
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Analysis
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
Essay
- Compare and contrast the different types of employee theft.
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Analysis
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- What are some of the more common theft prevention strategies in the retail
system and what are the advantages to each strategy?
Learning Objective: 3-1: Discuss the ways employee theft occurs in the retail system and its impact.
Cognitive Domain: Analysis
Answer Location: Employee Theft in the Retail System
Difficulty Level: Medium
- Discuss the factors that contribute to high theft in the restaurant industry.
Give examples.
Learning Objective: 3-2: Explain how theft occurs in the restaurant and hotel industries.
Cognitive Domain: Analysis
Answer Location: Crimes in the Entertainment/Services System
Difficulty Level: Medium
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Complete Test Bank | White Collar Crime 3e by Payne
By Brian K. Payne