The Securities and Exchange Commission (SEC)has Proposed a Set of Rules

question 2

Multiple Choice

The Securities and Exchange Commission (SEC) has proposed a set of rules that would ultimately require U.S.companies to use international financial reporting standards. Why?

• A) With global business there is a need for consistency
• B) More than 100 countries already use it.
• C) foreign companies would be more willing to invest in the United States if they could use international accounting rules.
• D) All of these answers are true

---

Definitions:

Free-Rider Problem

A situation in which individuals receive benefits from a public good without contributing to its cost, leading to underprovision of those goods.

Selective Benefits

Selective benefits are advantages or perks provided exclusively to members of a group, organization, or society, rather than to the general public.

Collective Goods

Benefits or goods that are shared and cannot be denied to anyone within a community or society, such as clean air or public safety.

Membership Association

An organization founded and funded by members who share a common interest or goal, offering various benefits to members such as resources, networking opportunities, and advocacy.