How Did the Problem of Unfunded Mandates Emerge, and What

question 54

Essay

How did the problem of unfunded mandates emerge, and what has Congress done to address this concern?

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Definitions:

Corporate Governance Requirements

Guidelines and rules that dictate how a company is operated and controlled, focusing on the relationship between the board, shareholders, and other stakeholders.

Public Company

A company whose shares are traded freely on a stock market, with disclosure of financials and other significant information to the public.

Federal Government

The Federal Government is the national government of a federation, responsible for governing the entire country and managing affairs that go beyond the jurisdiction of individual states or provinces.

Sarbanes-Oxley Act

In 2002, the United States passed a federal statute aimed at defending investors by advancing the veracity and trustworthiness of corporate disclosures.