The statement that is true about corporate scandals in the past is:
The penalties for problematic accounting behavior were weak or poorly defined.
Historically, regulatory frameworks and enforcement mechanisms were less stringent, often resulting in minimal consequences for companies involved in unethical practices. This lack of robust oversight contributed to numerous scandals. In contrast, the other statements either exaggerate or inaccurately represent the historical context of corporate scandals. Scandals have been a recurring issue throughout corporate history, and companies often do find ways to profit off or strategically manage their reputations even after scandals. Similarly, the notion that investors and the public profited from scandals is generally misleading, as most scandals tend to erode trust and lead to financial losses for investors and the broader public.
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