How Can a Consent Order Benefit a Company That Has

question 73

Multiple Choice

How can a consent order benefit a company that has been found guilty of violating an administrative law by an administrative agency?

• A) It avoids an admission of guilt.
• B) It can pay the cost of litigation over a period of five years.
• C) It can obtain a binding cease-and-desist order against the administrative agency.
• D) It avoids having to agree to anything in writing.

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Definitions:

Fama and French

Economist researchers known for their development of a three-factor model to explain stock returns based on market risk, size, and book-to-market value factors.

Firm Size

A measure of a company's size, often determined by its market capitalization, number of employees, or total assets.

Explanatory Power

The ability of a statistical model to account for a variation in a dependent variable through one or more independent variables.

Benchmark Error

A discrepancy between the performance of a benchmark index and the target performance of a fund or investment strategy it is supposed to represent.