Richard Moore is the controller for Ajax Company. Recently, he suffered several large losses at the race track, causing him to incur enormous personal debts. Which type of non-sharable financial problem best describes Richard’s situation?

Violation of Ascribed Obligation

Explanation:

Non Shareable Financial Problem

These are the type of financial debt that can cause some sort of shame or stigma in the individual's head. An individual may start committing fraud when faced with this pressure. It results because the individual feels unable to seek help from others It is part of the FRAUD TRIANGLE made up of

a. Percieved opportunity

b. Rationalization

c. Non shareable financial need.

The non shareable financial need is sub divided into 6 groups

1. Violation of ascribed obligation

2. Problems resulting from personal failure

3. Business reversals

4. Physical isolation

5. Status gaining

6. Employer-employee relationship.

Violation of ascribed obligation occurs when an individual is unable to pay his debts. This may lead to the individual engaging in illegal activities in order to catch up with the debt. Richard Moore is facing this kind of problem after losing his money on the race track.

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