What Is the Main Purpose of the Sarbanes-Oxley Act of 2002

question 19

Multiple Choice

What is the main purpose of the Sarbanes-Oxley Act of 2002?

• A) To increase the accuracy and reliability of corporate disclosures of financial information.
• B) To ensure that CEOs are adequately compensated for the risks they face in terms of corporate governance.
• C) To amend NAFTA to be more favorable to U.S. interests.
• D) To limit the ability of drug companies to engage in direct-to-consumer advertising.
• E) To limit the ability of the media to obtain confidential corporate information.

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Definitions:

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.

Equivalent Replacement

The act or process of replacing an asset with another that performs the same function or yields the same output.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Overdue

Refers to a payment or obligation that has not been met by its specified due date.