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 the above?

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Agency conflicts refer to conflicts of interest between different parties involved in a transaction, such as between shareholders and managers. While agency conflicts may result in financial losses or legal fines, they are not a direct consequence of unethical behavior and are therefore not an example of the legal system or market forces imposing costs on unethical behavior. Alternatively, financial losses, legal fines, and jail time are all examples of the costs that may be imposed on individuals and institutions that engage in unethical behavior.

The Legal System and Market Forces Impose Substantial Costs on Individuals