Unsuccessful Products or Bad Corporate Management May Result in Investors

question 53

Multiple Choice

Unsuccessful products or bad corporate management may result in investors experiencing ________ risk.

• A)inflation
• B)interest rate
• C)business failure
• D)systematic
• E)income

Realize the value of building diverse relationships for personal and career development.

Identify the steps to effectively manage and use technology for academic success.

Comprehend the benefits and procedures of forming or joining study groups.

Acknowledge the process and resources available for choosing a major or career path.

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Definitions:

Sarbanes-Oxley Act

An act that criminalizes specific nonaudit services when provided by a registered accounting firm to an audit client; also increases the punishment for a number of white-collar offenses. Also known as the Public Company Accounting Reform and Investor Protection Act of 2002.

Investment Company Act

A U.S. federal law enacted in 1940 aimed at regulating investment companies to protect investors by enforcing transparency and reducing conflicts of interest.

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.

Debentures

A type of debt instrument not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.