The fundamental assumption of cost-volume-profit (CVP) analysis is that, in the long run, fixed costs become variable costs

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

a. Because of the act, the SEC was required to establish an oversight board. b. Because the act is complex, compliance is more expensive and time-consuming for corporate management. c. Because of the act, auditors, and accountants receive monetary rewards if they find violations. d. Because of the act, a corporation’s chief executive and financial officers must certify financial reports. e. Because of the act, auditors, accountants, and employees can be imprisoned for destroying financial documents related to an audit.

Zack Limited Partnership intends to sell $6 million of its limited partnership interests. Zack conducts all of its business activities in the state in which it was organized. Zack intends to use the offering proceeds to acquire municipal bonds. Which of the following statements is true concerning the offering and the registration exemptions that might be available to Zack under the Securities Act of 1933?

A. The offering is exempt from registration because of the intended use of the offering proceeds. B. Under Rule 147 (regarding intrastate offerings), Zack may make up to five offers to nonresidents without jeopardizing the Rule 147 exemption. C. If Zack complies with the requirements of Regulation D, any subsequent resale of a limited partnership interest by a purchaser is automatically exempt from registration. D. If Zack complies with the requirements of Regulation D, Zack may make an unlimited number of offers to sell the limited partnership interests.