What do we call a payment made to a third party for assistance in a financial transaction, often deemed unethical?

Study for the NAB Domain 2 Operations Test. Use flashcards and multiple choice questions, with hints and explanations. Get exam ready!

A payment made to a third party for assistance in a financial transaction that is often considered unethical is referred to as a kickback. This term specifically denotes a situation where money is exchanged secretly to persuade the recipient to take certain actions or favor a particular party. Typically, kickbacks are illicit arrangements that undermine transparency and integrity in transactions, as they can lead to corrupted decision-making processes.

In contrast to legitimate commissions or incentives, which are standard compensations for services rendered or sales made, kickbacks often involve an element of deceit and are characterized by their hidden nature. This differentiation emphasizes the unethical aspect of kickbacks, distinguishing them from other types of payments that might be part of lawful business practices.

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