The Sarbanes-Oxley Act of 2002 Requires That Management of Publicly

question 15

Multiple Choice

The Sarbanes-Oxley Act of 2002 requires that management of publicly traded companies:

• A) use investment centers to evaluate top managers.
• B) report on the adequacy of the company's internal controls over financial reporting.
• C) compensate managers with fixed compensation plans only.
• D) eliminate stock options for managerial compensation.

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Definitions:

Damages

Compensation claimed by or awarded to a person for injury or loss due to a breach of contract, negligence, or other unlawful act.

Property Rights

Legal rights over the use, control, and benefits of ownership for property, including real, personal, and intellectual property.

Exclusive Use

The condition or situation where access or rights to a resource or property are limited to a specific person or entity.

Legal Protection

Measures and laws in place to safeguard individuals, groups, or organizations against infringement or harm regarding their rights, property, or well-being.