Which of the following best defines larceny in a business context?

• A. The intentional misstatement or omission of financial information to deceive users of financial statements.
• B. The unauthorized use of company resources for personal gain without removing physical property.
• C. The unlawful taking and carrying away of property or cash belonging to the business with the intent to permanently deprive the owner of its use.
• D. The accidental loss of company assets due to negligence or error.

Answer: (C)

Verified step by step guidance

1. Understand the term 'larceny' in a business context. Larceny refers to the unlawful taking and carrying away of property or cash belonging to the business with the intent to permanently deprive the owner of its use.
2. Differentiate larceny from other terms such as fraud, which involves intentional misstatements or omissions in financial information to deceive users, and embezzlement, which involves unauthorized use of company resources for personal gain.
3. Eliminate options that do not align with the definition of larceny. For example, accidental loss due to negligence or error does not involve intent, which is a key component of larceny.
4. Focus on the intent to permanently deprive the owner of the property or cash, as this is a defining characteristic of larceny.
5. Select the option that matches the definition of larceny: 'The unlawful taking and carrying away of property or cash belonging to the business with the intent to permanently deprive the owner of its use.'