Identify a recent business trend that could be contributing to the increased number of collusive frauds.
A)Reduced cost savings and product quality from using same suppliers.
B)Advances in technology that simplifies the process of conducting business.
C)Increasing frequency of supplier alliances,and closer relationships between buyers and suppliers.
D)Increased competition amongst suppliers that substantially erodes profit margins.

Question

Quizplus · Accepted Answer

Increasing frequency of supplier alliances and closer relationships between buyers and suppliers could contribute to the increased number of collusive frauds as it creates an environment where collusion between buyers and suppliers is easier to conceal and execute. Closer relationships increase the likelihood of trust among parties, and collusion can be facilitated by the sharing of insider information that may not be available to other parties.

Identify a Recent Business Trend That Could Be Contributing to the Increased