Final answer:
The action described in the question is an example of embezzlement by the broker. Embezzlement is the act of misappropriating funds entrusted for personal use or unauthorized purposes.
Step-by-step explanation:
The action described in the question is an example of embezzlement by the broker. Embezzlement is the act of misappropriating funds entrusted to one's care for personal use or unauthorized purposes. In this case, the broker received earnest money from a buyer but instead of placing it into the trust account, they used it to pay company bills.
Embezzlement is a serious offense and is illegal. Brokers have a fiduciary duty to handle funds entrusted to them responsibly and ethically. Misusing these funds is a breach of trust and can lead to legal consequences.