Which scenario illustrates an example of a kickback scheme?

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This scenario exemplifies a kickback scheme because it directly involves an employee receiving compensation in exchange for directing business to a vendor, often resulting in financial gain for both the employee and the vendor. In this arrangement, the employee is incentivized to funnel company resources to the vendor rather than seeking the best service or price for the company, which can lead to inflated costs and unethical practices. The kickback is essentially a reward for prioritizing the vendor’s interests over the company’s, and it undermines the principles of fair competition and integrity in business transactions.

In contrast, the other options depict different forms of corrupt practices, such as extortion or bribery, which do not specifically capture the essence of a kickback scheme. For instance, in the first scenario, a politician's threat to close a business reflects coercion rather than a mutual exchange of value. The second scenario involves a government official demanding money, which is a straightforward bribery situation. The third option describes an over-invoicing scheme, where a vendor is taking advantage of a company through inflated billing rather than the exchanges typical of a kickback. Each of these examples, while involving unethical behavior, does not fit the characteristic model of a kickback scheme like the correct answer does.

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