As a Result of Scandals Involving Publicly Traded Corporations Such

question 190

Multiple Choice

As a result of scandals involving publicly traded corporations such as Enron, WorldCom, and Adelphi, Congress passed legislation known as:

• A) SOX
• B) HIPAA
• C) FERPA
• D) GLBA

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Definitions:

Break-even Point

The point at which the amount of products sold or produced matches the total costs, leading to neither a profit nor a loss.

Margin of Safety

The difference between actual or expected sales and the breakeven sales, indicating the amount by which sales can drop before the business incurs a loss.

Percentage of Sales

A financial metric or method that relates various income statement accounts as a percentage of sales, often used for analysis or forecasting.

Operating Leverage

A measure of how much a company's income can be affected by changes in sales volume, highlighting the ratio of fixed costs to variable costs.