Webclass 46: Which suppliers are shell companies?

Q1. Why are shell companies typically in foreign countries? (single choice)

Because they tend to be in tax havens

Correct Incorrect Correct answer

Because they tend to be importers

Correct Incorrect Correct answer

Q2. Can it be legal to have a shell company? (single choice)

Yes

Correct Incorrect Correct answer

No – Shell companies are always illegal

Correct Incorrect Correct answer

Q3. What reasons might Shell companies be legal? (single choice)

If they are set-up in advance of an investment in a foreign market

Correct Incorrect Correct answer

If they are set-up to convert cash into bank balance

Correct Incorrect Correct answer

Q4. What formula does RedFlagAlert.com suggest for identifying popular tax havens? (single choice)

Amount of money the country holds/ amount of money they should hold based on their economies

Correct Incorrect Correct answer

Amount of money in the economy / the Transparency Index for the country

Correct Incorrect Correct answer

Q5. Which countries are the most popular tax havens according to redflagalert.com? (single choice)

British Virgin Islands, Taiwan, Jersey, Bermuda, Cayman Islands

Correct Incorrect Correct answer

Hong Kong, British Virgin Islands, Cyprus, Cayman Islands, Panama

Correct Incorrect Correct answer

Q6. Why might high-value payments to one time vendors be indicative of a shell company? (single choice)

Because one time vendors are normally used for small purchases.

Correct Incorrect Correct answer

Because one time vendors are illegal entities

Correct Incorrect Correct answer

Q7. Why might invoices without goods receipts be indicative of shell companies? (single choice)

Because Shell companies do not tend to have any real activities/ services.

Correct Incorrect Correct answer

Because Shell companies tend to deliver directly to the customer.

Correct Incorrect Correct answer

Q8. Why might incomplete vendor information be indicative of a shell company? (single choice)

Because typically, one would want to hide the ownership of the shell company

Correct Incorrect Correct answer

Because Shell companies are never real entities

Correct Incorrect Correct answer

Q9. How can correlation help us to go quicker when we want to identify shell companies? (single choice)

Because it is the combination of red flags that can raise a supplier's risk profile.

Correct Incorrect Correct answer

Because a Shell company tends to have a relationship with employees

Correct Incorrect Correct answer

Q10. What example of Artificial Intelligence does Claire give for Shell companies? (single choice)

Isolation Forest

Correct Incorrect Correct answer

Decision Tree

Correct Incorrect Correct answer

Webclass 46: Which suppliers are shell companies?

Webclass 46: Which suppliers are shell companies?

admin June 9, 2026

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question