Which of the Following Is Not an Objective of the SEC's

question 60

Multiple Choice

Which of the following is not an objective of the SEC's integrated disclosure system?

• A) to coordinate the Form 10-K requirements with those of the annual report
• B) to lessen the impact of the FASB
• C) to expand the management discussion of liquidity, capital resources, and results of operations
• D) to improve the quality of disclosure
• E) to standardize information requirements

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Definitions:

Government Failure

Occurs when government intervention in the economy causes more harm than good, leading to inefficiencies or unintended negative consequences.

Idealized Economic Efficiency

A theoretical state in which resources are allocated in the most effective way possible, maximizing productivity while minimizing waste and inefficiencies.

Externality

A consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices.

Uncompensated Benefits

Benefits that occur from an economic transaction that affect individuals not directly involved in the transaction, not compensated by the market.