The Internal Control Provisions of SOX Apply to Which Companies

question 54

Multiple Choice

The internal control provisions of SOX apply to which companies in the United States?

• A)All companies.
• B)SEC registrants.
• C)All issuer (public)companies and nonissuer (nonpublic)companies with more than $100,000,000 of net worth.
• D)All nonissuer companies.

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Definitions:

Value Chain

A model that describes the full range of activities needed to create a product or service, from initial conception through the different phases of production to the delivery to consumers.

Leading Indicators

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future movements.

Lagging Indicators

Economic indicators that usually change after the economy as a whole does, thus confirming long-term trends.

Cognitive Bias

A systematic error in thinking or decision-making due to the brain's attempt to simplify information processing.