Which of the Following Is Not True About How the Sarbanes-Oxley

question 20

Multiple Choice

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

• A)It requires that ethics be embedded in the organizational culture.
• B)It requires that audit committees establish anonymous tip lines.
• C)It provides protection for whistle-blowers.
• D)It requires that public companies adopt a code of ethics for senior financial officers.

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Definitions:

Corporate Directors

Individuals elected by shareholders to oversee the management of a corporation and ensure that it is being run in accordance with their interests.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, carrying on business, incurring liabilities, and suing or being sued.

Cash Tender Offer

A type of takeover in which the aggressor corporation offers to pay the target shareholders cash for their stock.

Corporate Takeovers

The process by which a company is acquired by another, often by purchasing a majority of its stock to gain control.