In which of the following situations is a clawback most likely to occur?
A) A departmental manager skimmed off company receipts to earn petty cash.
B) A CEO made millions on a fraudulent investment that cost investors billions.
C) A low-level employee was found to be taking small gifts or bribes from customers.
D) An employee was promoted to a management position but later was revealed to have falsified customer receipts prior to the promotion.

Question

Quizplus · Accepted Answer

Clawbacks are typically used to recover money from individuals who have earned it through improper or fraudulent means, especially in cases where their actions have caused significant financial harm to others, such as investors. In the scenario with the CEO making millions on a fraudulent investment, this situation aligns most closely with the circumstances under which clawbacks are invoked.

In Which of the Following Situations Is a Clawback Most