Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a financial advising organization has decided to use cash from newer investors to pay off older ones. The actions of management are an example of

Respuesta :

Answer:

a Ponzi scheme

Explanation:

Based on the information provided within the question it can be said that the actions of management are an example of a Ponzi scheme. This term refers to fraudulent investing scam which promises the investors a high rate of return with minimal risk involved. They then use money from newer investors to pay for the returns of older investors, thus keeping the investors happy until it all comes crashing down and they creators dissapear with as much money as they can.