Final answer:
Bid-rigging is a form of collusion in the business world, which corrupts the fairness of a bidding process. It is closely related to illegal gratuity, as it also involves an unlawful transaction. The correct answer is d) illegal gratuity.
Step-by-step explanation:
Bid-rigging is a form of collusion that is often seen in the context of business dealings and public procurement processes. It is a type of illegal activity where competing parties agree upon the outcomes of a bidding process in advance, which undermines the principles of fair competition. The goal of bid-rigging is to ensure that one of the participants wins the bid at a predetermined price or condition, often leading to inflated prices, compromised quality, or other detriment to the party seeking bids.
For understanding this concept, let's look at the options provided:
- Bribery involves offering something of value to influence the action of someone in a position of power.
- Extortion is the practice of obtaining something, especially money, through force or threats.
- Skimming refers to the act of taking money off the top of the cash flow, often illegally, before the finances are officially accounted for.
- Illegal gratuity is the giving or receiving of something of value for or because of an official act.
Among these options, bid-rigging is most closely related to illegal gratuity, as it involves an understanding between parties that is against the law and typically involves a transaction or advantage given to the winning bidder beyond the fair competition.
Therefore, the correct option for the type of activity bid-rigging represents is d) illegal gratuity.