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Financial compensation refers to the act of providing a person withmoney or other things ofeconomic value in exchange for theirgoods,labor, or to provide for the costs of injuries that they have incurred. The aim of financial compensation is the preservation of relationships between those engaged in economic exchange.[1]
Kinds of financial compensation include:
Financial compensation is often provided afterservice delivery failure in order to regaincustomer trust.[2] An associated response is to offer anapology that communicates the transgressor feelsremorse.[1]
Financial compensation may be offered as anincentive.[3] Some offers are too good to refuse. They may become an undue inducement in which they distort people's judgment, contravene their interests and thereby causeharm.[3]
Financial compensation may be imposed by ajudge, before a court, to a victim.[4]
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