The Sarbanes-Oxley Act Requires Senior Executives of Companies to

question 2

Multiple Choice

The Sarbanes-Oxley Act requires senior executives of companies to

• A) Ensure the confidentiality and privacy of financial information
• B) Provide a code of ethics for employees
• C) Ensure all financial statements are audited
• D) Provide full and fair disclosure of all financial agreements
• E) Certify the effectiveness of internal controls against fraud

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Definitions:

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Net Assets

The total assets of a company minus its total liabilities, representing the shareholders' equity.

Individual Assets

An individual asset refers to a specific item of property, tangible or intangible, owned by a person or a company.

Joint Operations

A business activity in which two or more parties share control and management, as well as the benefits and risks of the operation.