Which of the Following Is True of the Sarbanes-Oxley Act

question 59

Multiple Choice

Which of the following is true of the Sarbanes-Oxley Act?

• A) It penalizes companies that violate ethical standards that are not enacted by the rule of law.
• B) It prevents companies from acting only in the interest of maximizing the wealth of its stakeholders.
• C) It requires public companies to disclose whether it has a code of ethics for senior financial officers.
• D) It penalizes companies that fail to contribute toward social issues.

Calculate and interpret working capital.

Understand the computation and significance of the acid-test (quick) ratio.

Calculate and interpret accounts receivable turnover.

Understand the calculation of average sale and collection periods.

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Definitions:

NYSE Specialists

Professionals on the New York Stock Exchange floor who are responsible for managing the trading and auction of particular stocks, ensuring fair and orderly markets.

Insider Information

Privileged, non-public information about a corporation that could influence an investor's decision to buy or sell the stock.

Continuous Auction Market

A continuous auction market is a type of financial market in which buy and sell orders are continuously matched throughout the trading day, allowing for instant trade execution.

Private Placements

Securities sold directly to a small number of private investors, rather than through a public offering.