An Important Element of the Sarbanes-Oxley Act of 2002 Is

question 18

Multiple Choice

An important element of the Sarbanes-Oxley Act of 2002 is that it

• A) sets limits on the market shares of large corporations.
• B) enables the Fed to actively intervene in the stock market by buying corporate securities during times of falling stock prices.
• C) tightens the standards of accountability for the top corporate officers.
• D) requires corporate boards of directors to have at least one elected public official as a member.
• E) prevents corporations from declaring profits that are higher than they originally estimated.

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Definitions:

Voidable

Refers to a legal distinction indicating that an agreement or transaction can be nullified or canceled by one of the parties involved.

Rescinded

Describes an action whereby a contract, order, or agreement is revoked, canceled, or repealed.

Antedated

Refers to a document or event dated earlier than the actual date, often done to give the appearance of an earlier occurrence.

Material Fact

A fact that is significant or essential to the issue or matter at hand, which, if known, could influence an individual's decision.