All of the Following Are Reasons Why SOX Was Enacted

question 53

Multiple Choice

All of the following are reasons why SOX was enacted, except:

• A)Enron's CEO, Jeffrey Skilling, claimed he did not know about the company's financial shenanigans because he was not involved in their accounting
• B)Public perception was that auditors were having conflicts of interest with respect to the auditing and consulting services they provided
• C)The CICA has long been thought to be ineffective
• D)Congress wanted to restore investor confidence in the wake of a rash of corporate scandals

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Definitions:

Break-even Price

The price level at which a business does not make a profit or a loss.

Long Run

In economics, the period in which all inputs can be adjusted, with no fixed costs, allowing for full adjustment to changes in the market.

Industry Supply Curve

A graphical representation showing the total quantity of a good that producers in an industry are willing to supply at various prices.

Individual Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that a single producer is willing to supply.