Which term describes payment to a person for loss or injury?

• A. Fine
• B. Restitution
• C. Compensation
• D. Community service

Answer: (C)

The concept here is monetary remedy given to someone to make up for harm they suffered. Compensation is money paid to a person for loss or injury, such as medical bills, lost wages, or pain and suffering, with the aim of restoring them as much as possible to their prior situation. This is distinct from a fine, which is punishment levied by the state on the offender; from community service, which is a coercive penalty involving work; and from restitution, which focuses on returning property or funds wrongfully obtained to the victim or to the rightful owner. In short, compensation covers the general idea of paying for the harm itself, not punishment or the return of property.