What is embezzlement?

Embezzlement is defined as the fraudulent use of money or property entrusted to an individual’s care, typically in a professional or fiduciary capacity. This occurs when someone who has been given control or access to assets misappropriates them for personal use without the consent of the owner.

Understanding this definition clarifies why the correct answer emphasizes the fraudulent aspect and the breach of trust involved in embezzlement. Unlike theft of physical property, which involves the outright taking of items, embezzlement specifically pertains to misuse of funds or assets that one is responsible for managing.

Additionally, while business mismanagement and tax evasion tackle broader financial misconduct, they do not encompass the specific act of embezzlement, which centers exclusively on the misappropriation of funds. It's crucial to distinguish embezzlement from other types of financial crime, as its legal implications and consequences are particularly severe due to the violation of trust inherent in the act.