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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 ofa. a code of conduct.b. a Ponzi scheme.c. a JIT system.d. a business plan.e. insider trading.

Respuesta :

Answer: Ponzi Scheme.

Explanation:

The Organisation described in the question is making use of Ponzi Scheme for their clients. A Ponzi scheme is a fraudulent form of business where initial investors are paid by later investors. The scheme promises abnormally high returns from investments within a short period, with some investors ending up losing their investments.

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