Red Spark Inc., a multinational electronics manufacturer, recently came under close scrutiny after it was involved in a major money laundering scam. The scam had adversely affected the careers of more than two hundred employees of Red Spark despite the fact that they were not involved in the scam. This scenario illustrates that the scam had a:
A) low probability of effect.
B) high peer acceptance.
C) low concentration of effect.
D) high magnitude of consequences.

Question

Quizplus · Accepted Answer

The scenario suggests that the scam had adverse consequences for more than two hundred innocent employees, despite not being directly involved in it. Therefore, the magnitude of the consequences (i.e., the number of people affected) was high. The other options do not adequately describe the scenario: A) low probability of effect indicates that the likelihood of the scam affecting anyone was low, which is contradicted by the given situation, B) high peer acceptance is irrelevant to the scenario, and C) low concentration of effect suggests that only a few individuals were affected, which is not true.