Briefly Explain the Advantages and Disadvantages of Sarbanes-Oxley Act of 2002

question 3

Essay

Briefly explain the advantages and disadvantages of Sarbanes-Oxley Act of 2002 (SOX).

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Definitions:

Break-even Analysis

An examination to determine the point at which revenue received equals the costs associated with receiving the revenue.

Capacity Decision

Decision-making relating to the amount of resources, such as production volume or manpower, necessary to meet a specified demand.

Bottlenecks

Points of congestion or obstruction in a system, process, or organization where the flow is significantly slowed or stopped, leading to inefficiency or delays.

Increased Capacity

Refers to the ability of a production facility, system, or organization to handle a larger amount of work or output, typically through expansion or optimization processes.