Who Would Most Likely Be Affected by Large Punitive Damages

question 26

Multiple Choice

Who would most likely be affected by large punitive damages a company is forced to pay for committing a white-collar crime?

• A) CEOs who may be forced to resign and forfeit bonuses
• B) top managers who would get lower bonuses or lose other perks to repay the damages
• C) lower-level employees who would not get wage increases until the damages are recovered by the company
• D) customers who will pay higher prices so the company can recover profits lost to paying the damages

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Definitions:

Stress Appraisal

The process by which individuals evaluate and cope with a stressful event, determining its significance and how to manage it.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's resources for emergencies, producing a 'fight or flight' response.

Fight-Or-Flight

A physiological response to perceived harmful events, attacks, or threats to survival, initiating a hormonal cascade that prepares the body to fight or flee.

General Adaptation Syndrome

A three-phase psychological response to stress outlined by Hans Selye, involving alarm, resistance, and exhaustion stages.