Mike Patton worked in advertising for Bungle, Inc. When customers paid with cashfor their purchases, Mike would slip a $5 bill into his pocket. At the end of the night,Mike would add up the money in his pocket and create a false refund for thatamount. What type of scheme is this an example of?LappingLarceny at the point of saleSales skimmingLarceny at the deposit

About Sales and MarketingThe building block of any business plan is an alliance between sales and…

Answered: Mike Patton worked in advertising for…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Pacific Southern Airlines (PSA) had an unhappy customer. Cynthia Mercier-Walters flew from Philadelphia, Pennsylvania, to Phoenix, Arizona. The flight stopped briefly at Hartsfield-Jackson Atlanta International Airport, where she got off the plane for half an hour. When she returned to her seat, her $400 prescription reading glasses were gone. She asked the flight attendant where the glasses were, and the attendant said they probably were thrown away since the cleaning crew had come in with big bags and tossed everything in them. Ms. Mercier-Walters tried to locate the glasses through the airline’s lost-and-found service, but she failed. Then she wrote a strong letter to the airline demanding reimbursement for the loss. She felt that it was obvious that she was returning to her seat. The airline, however, knows that an overwhelming number of passengers arriving at hubs switch planes for their connecting flights. The airline does not know who is returning. What’s more, flight attendants…
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The difference between fraud and errors is: a. the timing of the transaction b. the materiality of the value involved. c. intent of those involved. d. whether it affects owners’ equity or not.
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Cedar Hospital Systems Fraud Hospital administrator Jake Rosen was recently convicted for fraud he committed against his employer, Cedar Hospital Systems. Over a period of six years, he allegedly made payments to a dummy company for maintenance charges while simultaneously running a scheme with maintenance contractors where he either paid them for work never performed or overpaid them for work. The skyscraper where Jake worked was only 10 years old. Maintenance charges rose from $5.2 million in 1994 to $16.4 million in 2000. It was worth noting that the judge on the case questioned whether Cedar Hospital Systems deserved less than full restitution for failing to notice the problem. However, it was determined that federal law on restitution does not allow such charges, so Jake Rosen will be making monthly payments towards the alleged $8 million he stole until he makes full restitution after leaving prison. He was able to quickly repay $3.2 million of the theft with assets recovered by…
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