The Sarbanes-Oxley Act requires that ________
A) companies be held financially responsible for environmental damage caused by their actions
B) CEOs verify their companies' financial statements and vouch for their accuracy with the SEC
C) all food packaging displays complete nutritional information
D) investment bankers disclose the percentage of their assets that are considered high risk
E) companies uphold the ADA
B
Explanation: B) Under the Sarbanes-Oxley Act of 2002, CEOs are required to verify their companies' financial statements and vouch for their accuracy with the SEC. Enron and other corporate scandals had such an impact on the business community and on the government regulatory agencies that the Sarbanes-Oxley Act was enacted to try to prevent scandals of this magnitude from occurring again.
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Which term refers to an in-store machine that allows a customer to order merchandise not carried in the store?
A) kiosk B) automated teller machine C) virtual catalog D) interactive TV E) direct-response device
Consider a one-period binomial model of 12 months. Assume the stock price is $54.00,
? = 0.25, r = 0.04 and the exercise price of a call option is $55. What is the forecasted price of the stock given a downward movement during the year? A) $43.77 B) $ 45.28 C) $48.98 D) $51.84