What Is the Most Likely Outcome When a Company Demotes

question 15

Multiple Choice

What is the most likely outcome when a company demotes the perpetrator but allows him or her to go unprosecuted?

• A) The company will avoid bad publicity.
• B) The perpetrator may commit another fraud in the future.
• C) The perpetrator will be saved from pain and embarrassment.
• D) Management will send a signal that fraud will not be tolerated.

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Definitions:

Disequilibrium Principle

The state of imbalance or disequilibrium in an eco-system or in a market, which can lead to significant shifts or adjustments within that system.

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Law of Effect

A psychological principle suggesting that behaviors followed by positive outcomes are likely to be repeated, while those with negative outcomes are not.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without the need for further conditioning.