Question 1

The success of the economy is tied through relativism to which system?

Accepted Answer

Retail is often considered a key indicator of economic success as it reflects consumer spending and confidence, which are crucial for economic growth.

Question 2

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?

Accepted Answer

Shrinkage refers to the loss of inventory that can occur from a number of factors including theft, employee fraud, damage, and errors. The National Retail Security Survey typically measures losses in the retail sector attributed to shrinkage, which encompasses theft by customers (shoplifting), theft by employees, administrative errors, and supplier fraud.

Question 3

Which of the following is an example of employee theft in the retail system?

Accepted Answer

Giving sweetheart deals is an example of employee theft in the retail system, as it involves employees giving unauthorized discounts or benefits to friends, family, or favored customers, which costs the business revenue.

Question 4

What type of retail prevention strategies do drug tests and audits fall into, respectively?

Accepted Answer

Drug tests are a form of importation strategy, aiming to prevent the introduction of drugs into the workplace by employees. Audits are an internal strategy, used to monitor and check internal processes and systems for any irregularities or issues.

Question 5

How do organizational culture strategies work to prevent employee theft in the retail business?

Accepted Answer

With managers promoting a sense of community in the workplace and highlighting the company values from the start, employees are less likely to steal.

Question 6

Which system attributes the typical young age of its employees and low wages to employee theft?

Accepted Answer

The answer of Which system attributes the typical young age...

Question 7

When a restaurant routinely sells its customers smaller portions of food than it advertises, it is engaging in what type of theft?

Accepted Answer

Short weighing refers to giving less than the advertised amount of a product, which in this context applies to serving smaller portions of food than advertised.

Question 8

Which of the following are examples of prevention strategies for the restaurant business?

Accepted Answer

The answer of Which of the following are examples of...

Question 9

To what are the majority of crimes committed in a hotel attributed?

Accepted Answer

The majority of crimes committed in a hotel are attributed to employee theft. This is because employees often have access to rooms and areas that are off-limits to guests, making it easier for them to commit theft without being noticed.

Question 10

How does the sales/service system differ from the retail system?

Accepted Answer

The retail system encompasses a broad range of goods, including both basic and luxury items, while the sales/service system specifically refers to the sale of basic goods and services, distinguishing the two in terms of the variety of goods sold and the inclusion of services.

Question 11

What type of auto sales fraud occurs when mechanics and car dealers collaborate to cheat customers?

Accepted Answer

Odometer fraud occurs when mechanics and car dealers work together to roll back the odometer of a vehicle to falsely represent a lower mileage, thereby cheating customers into paying more for a car than it is actually worth.

Question 12

Who do door-to-door scam artists in the home repair industry target and why?

Accepted Answer

Door-to-door scam artists in the home repair industry often target the elderly because they are usually home during the day and may be more vulnerable to deception or pressure tactics.

Question 13

Why do home repair frauds fly under the radar as far as the public awareness is concerned?

Accepted Answer

Many homeowners may not realize they have been defrauded, leading to underreporting and less public awareness.

Question 14

Which of the following is not an example of a consequence of home repair fraud?

Accepted Answer

Home repair fraud typically involves scams where services are either not provided as promised or are unnecessary, leading to direct consequences such as additional damage, extra costs, and stress. Higher insurance rates are not a direct consequence of home repair fraud itself but could result from filing claims for damages caused by such fraud.

Question 15

What steps have been taken to reduce the home repair fraud scandals in the United States?

Accepted Answer

The answer of What steps have been taken to reduce...

Question 16

Which type of auto repair fraud can go undetected unless the driver has a serious accident?

Accepted Answer

Airbag fraud, which involves the installation of non-functional or counterfeit airbags, can go undetected until a serious accident occurs, at which point the airbags fail to deploy as expected, potentially resulting in severe consequences.

Question 17

What category of auto repair fraud does enhancing or creating damage fall under?

Accepted Answer

Enhancing or creating damage to a vehicle to claim insurance money falls under insurance fraud.

Question 18

What were the results of Paul Jesilow's experiment, in which he sought services in over 300 auto repair shops in California?

Accepted Answer

The answer of What were the results of Paul Jesilow's...

Question 19

Instances of what type of fraud increased in the aftermath of natural disasters?

Accepted Answer

After natural disasters, there is often a significant increase in home repair fraud. This is because many homeowners are in urgent need of repairs and may be more susceptible to scams by individuals or companies that offer quick fixes at seemingly low costs but fail to deliver on their promises or perform substandard work.

Question 20

The emergence of a legalized marijuana industry in 33 states has brought white-collar crimes to the industry by and against whom?

Accepted Answer

The emergence of a legalized marijuana industry has led to white-collar crimes primarily involving marijuana business owners against other marijuana business owners, as they navigate the competitive and often complex regulatory environment.

Quiz 3: Crimes in Sales-Related Occupations