Question

What is the most likely outcome when a company demotes the perpetrator but allows him or her to go unprosecuted?

a. The perpetrator will be saved from pain and embarrassment.
b. The perpetrator may commit another fraud in the future.
c. The company will avoid bad publicity.
d. Management will send a signal that fraud will not be tolerated.

Answer 1

b. The perpetrator may commit another fraud in the future.

Step-by-step explanation:

Of course the perpetrator may commit similar fraud in the future because he didn't face the wrath of law in the first instance.

Therefore companies should set clear rules against fraud and also be willing to prosecute employees that break them.

Answer 2

b. The perpetrator may commit another fraud in the future. Explanation:

This is because prosecution helps to create a scenerio of a likely punishment that awaits him if he tries to be fraudulent. Thus, with no prosecution, he is not scared to do what he wants to do as he believes he can escape it again