Final answer:
The statement about fraud causing an organization to fail in meeting its objectives is true. Fraud is a serious risk in business, with the potential to lead to significant organizational harm and prevent achievement of goals. Businesses mitigate fraud risks through codes of ethics and internal controls.
Step-by-step explanation:
The statement 'Fraud is the possibility that an event or action will cause an organization to fail to meet its objectives (or goals)' is true. Fraud represents deliberate deception to secure unfair or unlawful gain, and it can have severe consequences for any organization. In the business context, fraud can significantly impede an organization's ability to achieve its objectives by misdirecting resources, damaging reputations, and leading to financial losses.
Effective business management aims to mitigate the risks of fraud through robust internal controls and ethical practices. As societies demand greater corporate responsibility, businesses often develop a code of ethics to guide conduct and prevent unethical practices such as bribery, discrimination, and other forms of fraud. Across the economic system, while some business failures may occur due to bad luck or market shifts, fraud is a preventable risk that requires vigilant oversight.