Question

Under the U.S. Sentencing Commission Guidelines for Organizations, the base fine for an organization involved in unethical behavior is computed by:

a) Multiplying the organization's revenue by a fixed percentage
b) Assessing a flat fee for all violations
c) Evaluating the severity of the violation and its impact
d) Using a predetermined, fixed formula

Answer 1

The base fine under the U.S. Sentencing Commission Guidelines for Organizations is calculated by evaluating the severity of the violation and its impact, using a culpability score that considers multiple factors. So, the correct answer is option c.

Step-by-step explanation:

The base fine for an organization involved in unethical behavior under the U.S. Sentencing Commission Guidelines for Organizations is computed by evaluating the severity of the violation and its impact.

This method involves a process where the base fine is influenced by the culpability score, which takes into account various factors such as the organization's history, the involvement of high-level personnel, the degree to which the company benefited from the misconduct, and efforts to prevent and report such behavior.

The Guidelines also account for the seriousness of the offense, which is determined by the actual or intended loss resulting from the violation, and sometimes by specific offense characteristics.