Final answer:
Financial penalties meant to discipline individuals for violations are termed formal negative sanctions, with 'excess benefit transactions' being the correct option.
Step-by-step explanation:
Understanding Formal Negative Sanctions
Financial penalties used to punish individuals who engage in or allow improper transgressions fall under the category of formal negative sanctions. These are officially recognized ways to enforce norm violations, such as fines, imprisonment, or other legal penalties. In social control, sanctions, both positive and negative, play a critical role in encouraging or discouraging behaviors that align with societal norms. A formal negative sanction aims to correct behavior that is perceived as a violation of societal rules or laws. In contrast, positive sanctions reward adherence to these norms and values. Formal sanctions are distinguished from informal sanctions, which arise in social interactions without official intervention. Excess benefit transactions, which are considered a type of formal negative sanction.