Which of the Following Statements Best Explains the Carrot-And-Stick Approach

question 90

Multiple Choice

Which of the following statements best explains the carrot-and-stick approach of the U.S. Sentencing Commission Guidelines for Organizations?

• A) Nonprofit organizations are exempted from fines.
• B) Unincorporated organizations and associations are exempted from penalties.
• C) Organizations accused of unethical behavior are excused if the management was unaware of such behavior.
• D) Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior.

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Definitions:

Nominal Interest Rates

The rate of interest before adjustment for inflation, representing the face value of borrowing costs or investment returns.

Real Interest Rates

Interest rates adjusted for inflation, showing the real cost of borrowing or real yield of saving.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing and the real yield to investors.

Nominal Rate

The interest rate before adjustments for inflation, representing the face value of financial transactions.