Question

Having some clients who are less knowledge The triple bottom line represents ______, also known as the ____.enable 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

Answer 1

Answer:

1. People, planet, and profit, also known as 3 Ps,

2. The actions of management are an example of Ponzi and Pyramid Schemes.

Explanation:

The triple bottom line theory states that people and planet must also be included in addition to profit as part of the bottom line of companies.

People relates to the social impact of a company and it considers workers used in the work of the company, and the community in which the company operates.

Planet relates to the environmental impact of the operation of a company as it its tries to invest in renewable energy, improves logistics, and reduces waste.

Profit is also known as the economic bottom line of a company and it refers to the economic value it creates after the company subtract inputs cost as well cost relating the capital tied up.

Therefore, the 3 Ps all are seen as one bottom line of an organisation.

The actions of management are an example of Ponzi and Pyramid Schemes  in which older investors are paid from the payments received from new investors. They are fraudulent investing scams in which investors are promised high rates of return devoid of risk. Therefore, the schemes depends on the regular flow of new funds from the new investors to sustain the payment of returns to older investors. The scheme will fall apart immediately there is no more flow making the new investors to lose their investments.

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