Why Was the Sarbanes-Oxley Act of 2002 Created

question 50

Multiple Choice

Why was the Sarbanes-Oxley Act of 2002 created?

• A) in response to financial scandals
• B) as a result of environmental disasters
• C) in response to widespread Internet fraud
• D) because of a need for more e-discovery regulation

---

Definitions:

Marginal Cost

The growth in the total amount of costs resulting from the manufacture of one more unit of a good or service.

Efficient Scale

The level of production at which a firm achieves the lowest possible cost per unit of output, optimizing its use of resources.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for a given period.

Short-Run Equilibrium

Short-run equilibrium occurs when in a market, the quantity supplied equals the quantity demanded at the current price, before any long-term adjustments are made.