The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior. Which of the following would not be an example of these costs?

Question

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Agency conflicts refer to situations where agents act in their own self-interest rather than the interests of their principals, which is not directly related to the costs imposed by the legal system or market forces on unethical behavior. Financial losses, legal fines, and jail time are all examples of costs imposed on individuals and institutions that engage in unethical behavior.

The Legal System and Market Forces Impose Substantial Costs on Individuals