According to the Sarbanes-Oxley Act of 2002, If a Company

question 65

Multiple Choice

According to the Sarbanes-Oxley Act of 2002, if a company must restate financial statements due to material noncompliance with a financial reporting requirement, the act requires that the CEO ________.

• A) repay any bonuses received during the 12 months prior to the issuance of the financial statements in question
• B) make a public apology to stock holders
• C) resign from the position of CEO
• D) All of the above.

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Definitions:

Common Shares

Equity securities that represent ownership interests in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Replacement Cost

The current cost of replacing an asset with a similar one at its current market value.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bonds.

Market Portfolio

A theoretical portfolio that contains all assets in the market, with each asset weighted according to its market capitalization.