Which of the Following Is True of the Dodd-Frank Act

question 48

Multiple Choice

Which of the following is true of the Dodd-Frank Act with regard to regulating executive compensation?

• A) Shareholders were allowed a nonbinding vote on executive compensation, as directed by the Federal Reserve.
• B) Company executives received lower compensation when firms sold mortgage-backed securities and derivatives.
• C) Companies cannot take back compensation if it is based on inaccurate accounting statements.
• D) Only independent directors of a company could sit on compensation committees of the board.

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Definitions:

Social Change

The transformation of a culture over time.

Unmistakable Periods

Distinct and clear phases in time or history recognized for their unique characteristics or events.

Exclusively

Solely or only; limited to a single person, group, category, or purpose without involving others.

Extensive Drought

A prolonged period of abnormally low rainfall, leading to a severe water shortage affecting large geographic areas.