Question

Following a public outcry, the CEO of a nationwide consumer bank was forced to apologize to and recompense customers for whom the bank had set up false credit card and auto loan accounts, over 100,000 account managers were terminated, and the company's stock price also sharply declined. Which of the following did the company incur?

Answer 1

internal administrative costs, tangible costs, and intangible costs

Step-by-step explanation:

Internal administrative costs: the bank had to incur in administrative expenses because it had to fire many account managers (the total number wasn't so large, Wells Fargo fired about 5,300 employees, 100,00 are simply too many). This increases hiring costs and controlling costs.

Tangible costs: the bank had to compensate millions of customers and that costs money.

Intangible costs: the bank's brand image and reputation suffered a lot, and it will take a long time for customers to trust them again.