Important Provisions of the Sarbanes-Oxley Act

question 158

Multiple Choice

Important provisions of the Sarbanes-Oxley Act

• A) approve corporate loans to directors of the company.
• B) encourage the destruction of financial documents.
• C) require the CEO and CFO of corporations to certify the accuracy of financial reports.
• D) encourage outside CPA firms to deliver several services to their clients, including auditing services and consulting services.

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Definitions:

Perfect Competitor

A theoretical market structure where numerous small firms produce identical products, allowing no single firm to affect the market price.

Long Run

In economics, this term describes a period in which all factors of production and costs are variable, allowing full adjustment to any change.

Total Profit

The financial gain made after subtracting all expenses from total revenue.

Profit-Maximizing

A strategy or process employed by businesses to determine the price and output level that returns the highest profit.