Asked by Quinteria Woods on Sep 26, 2024

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Excessive,sky-high compensation tends to reduce instances of illegal business practices.

Sky-high Compensation

Extremely high or excessive payment or remuneration, often discussed in the context of executive pay or legal settlements.

Illegal Business Practices

encompasses activities conducted by a company or individual that are against the law and often involve unethical behavior to gain unfair economic advantage.

  • Achieve an understanding of the psychological defenses utilized by white-collar and corporate lawbreakers in explaining their actions.
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JB
Jennifer Benitezabout 14 hours ago
Final Answer :
False
Explanation :
Excessive, sky-high compensation may actually encourage illegal business practices as executives may feel pressure to meet financial targets and maintain their high salaries. This can lead to unethical behavior such as fraud or insider trading in order to boost profits and stock prices. Research has shown that more moderate compensation with a focus on long-term performance can reduce the likelihood of illegal activity.