Which of the Following Is False Regarding the Sarbanes-Oxley Act

question 26

Multiple Choice

Which of the following is false regarding the Sarbanes-Oxley Act?

• A) The Act mandates the composition and authority of audit committees at public companies.
• B) The Act prohibits personal loans to executives.
• C) The Act requires corporations to disclose whether they have a code of ethics applicable to senior financial officers and, if not, to disclose why not.
• D) The Act gives the SEC the authority to prohibit unfit persons from serving as officers or directors of a public company for a period of five years.

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Definitions:

Conscientiousness

A personality trait characterized by being organized, responsible, and thorough; one of the Big Five personality traits.

Introversion

A personality trait characterized by a preference for solitary activities and inward-focused experiences, as opposed to seeking stimulation from external sources.

Anxiety

An emotion of anxiety or restlessness, often experienced in anticipation of a forthcoming event or due to the unpredictable nature of its result.

Snowball Sampling

A non-probability sampling technique where existing study subjects recruit future subjects from among their acquaintances, thus the sample group appears to grow like a rolling snowball.