What is extortion in a business context?

In a business context, extortion refers to the act of threatening harm, either physical or reputational, to influence a person or company's decision-making processes. This involves using intimidation or coercion to achieve a desired outcome, typically involving financial gain or to compel someone to act in a way they otherwise would not. The threat could involve revealing damaging information, causing physical harm, or other forms of pressure designed to achieve compliance.

Understanding extortion is crucial for recognizing and preventing financial crimes, as it represents a significant risk to business operations and integrity. The other choices focus on different types of unethical or illegal actions, such as bribery or price inflation, but they do not capture the essence of extortion, which centers on the use of threats or coercion to manipulate decisions within a business setting.