The sentence of an organization punished under the Federal Sentencing Guidelines for Organizations is calculated through a three-step process: determination of mitigating factors, evaluating the credit rating, and the determination of base fine. A. True
B. False

False

Explanation:

The United States Federal Sentencing Guidelines for Organizations are calculated through a three-step process which includes;

1. The determination of the base fine. For organizations that were discovered to be operating mainly for criminal purposes, the fine is supposed to be set sufficiently high so as to divest their assets. The second is the evaluation and computation of their culpability score.

2. The estimation of their culpability score which ranges from 0-10. There are four factors that determine the degree to which the organization can be rightly blamed for the offense and two factors that mitigate the ultimate punishment. The four factors are; their level of involvement in the crime, the track record of the organization, their adherence to order, and their degree of cooperation with the enforcement agencies.

3. The two mitigating factors, which are; establishment of an effective ethics and compliance program and the level of cooperation with the authorities. After these, the total fine amount is computed.

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