ENTREPRENEURSHIP

Detailed explanation-1: -A kickback is a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered. Generally speaking, the remuneration – such as money, goods, or services – is negotiated ahead of time.

Detailed explanation-2: -Kickback schemes can be pervasive. For example, in the United States, companies providing medical services to Medicare patients were paying doctors to send patients to them, whether or not the patient needed the treatment, diagnosis, or test.

Detailed explanation-3: -A bribe is usually defined as the giving or receiving of a “thing of value” to corruptly influence the actions of another, most commonly to influence a contract award or the execution of a contract. A “kickback” is a bribe paid incrementally by the contractor as it is paid, usually an agreed percentage of the contract.

Detailed explanation-4: -For example, a government employee responsible for managing contractors on an infrastructure project–such as the building of a bridge–might receive a kickback for choosing one contractor over another. This may result in a better-qualified contractor not winning the bid.

Detailed explanation-5: -A kickback definition in law refers to the misappropriation of funds that benefits a person with power or influence. Typically, that person goes on to use their power or influence to make another person or organization even richer. Kickbacks are often the result of a corrupt bidding scheme.