When Firms Do Not Deal Swiftly and Fairly with the Unethical

question 18

True/False

When firms do not deal swiftly and fairly with the unethical behavior of employees, ethical employees feel penalized.

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Definitions:

Clustering Illusion

The cognitive bias of seeing a pattern in random events where none actually exists.

Professional Fund Managers

Individuals or entities responsible for making investment decisions and managing investment portfolios on behalf of investors.

Outperform

To do better than others or than a benchmark, often used in the context of investment performance.

Frame Dependence

The influence of presentation or context on decision-making outcomes.