What Effect Did the Sarbanes-Oxley Act Have on Codes of Ethics

question 30

Multiple Choice

What effect did the Sarbanes-Oxley Act have on codes of ethics and conduct in publicly traded companies?

• A) It forced companies to have or refine a code of conduct.
• B) It forced companies to have or refine a code of ethics.
• C) It forced transparency about whether or not companies had a code of ethics or conduct.
• D) It forced transparency into the nature of a company's ethics training system.

Grasp the implications of regulatory practices on monopolies, including the concepts of allocative efficiency and fair return.

Identify the different outcomes of price discrimination for monopolists versus consumers.

Recognize the economic and operational characteristics of natural monopolies.

Understand the role of economies of scale and network effects in reinforcing monopoly power.

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Definitions:

Maintenance Agreement

A contract between a service provider and a client for the ongoing maintenance and repair of equipment or property.

Implicit Lease Rate

The interest rate assumed in the lease contract that equates the present value of the lease payments and any unguaranteed residual value to the fair value of the asset.

Capitalization

The process of recording an expenditure as an asset on the balance sheet, rather than an expense, allowing its cost to be expensed over time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.