Exit costs refer to the expenses and difficulties associated with leaving a particular situation, agreement, or organization. These costs can include financial penalties, legal fees, and the loss of resources or benefits. They can also encompass the emotional toll and time investment required to disentangle oneself from a commitment or relationship. Exit costs can act as a deterrent to leaving, as they can make the decision to exit more challenging and costly. However, they can also serve as a safeguard for parties involved, ensuring that all parties fulfill their obligations and responsibilities before parting ways.