The Sarbanes-Oxley Act Was Passed To

question 20

Multiple Choice

The Sarbanes-Oxley Act was passed to:

• A)prevent fraud at public companies.
• B)replace all of the old accounting procedures with new ones.
• C)improve the accuracy of the company's financial reporting.
• D)Both A and C are correct.

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Definitions:

Equal Dignity Rule

A rule requiring that contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

Apparent Authority

The appearance or assumption of authority based on the actions or representations of the principal, leading others to believe that an agent is authorized.

Settlement Agreement

A legally binding contract where parties in a dispute agree on specific terms to resolve the matter without further litigation.

Wrongful Expulsion

An unjust or improper removal or exclusion of an individual from a group, organization, or place.