The Sarbanes-Oxley Act

question 30

Multiple Choice

The Sarbanes-Oxley Act:

• A) allows the SEC to add criminal penalties to a disgorgement fund for the benefit of victims of violations of the 1933 and 1934 securities acts.
• B) requires an outside CPA and the corporate treasurer to certify the financial and other information contained in the issuer's annual and quarterly reports.
• C) requires that issuers of securities disclose in plain English to the public on a rapid and current basis such additional information concerning material changes in the financial condition or operations of the issuer as the SEC determines is necessary or useful.
• D) All of these.

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Definitions:

Marginal Productivity

The additional output generated by employing one more unit of a particular resource, while holding other inputs constant.

Returns to Scale

The rate at which production output increases in response to proportional increases in all inputs.

Average Cost

The average cost is the total cost of production divided by the number of units produced, reflecting the cost per unit of output.

Marginal Cost

The supplementary expenditure required to produce an extra unit of a product or service.