Logic Breakdown

Passage Summary: If a company uses stolen or fraudulent money to make even more money, the punishment should strip them of every cent of that extra profit.

Reasoning: The passage establishes a principle that penalties for fraudulent funding should include the forfeiture of any profits generated from those funds during the time they were held.

Analysis: This is a Principle Application question, so your task is to find a scenario that mirrors the logic of 'stripping the benefit of the crime.' The core rule is that the penalty must account for the time-value and utility of the illicit gains, not just the initial amount taken. Look for an answer choice where a wrongdoer is forced to pay back not only what was taken but also the additional wealth they accrued because of the act. The goal is to ensure that crime literally does not pay.

Passage Stimulus

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26.

Which one of the following conforms most closely to the principle illustrated above?

Correct Answer
E
E fits the principle: a convicted criminal’s proceeds from a memoir about the crime must be donated to charity chosen by a third party, ensuring the wrongdoer does not profit from the wrongdoing. This mirrors “completely offset any profit” from the wrongful act.
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