Some Argue That the Law Has Been Ineffective in Deterring

question 4

Multiple Choice

Some argue that the law has been ineffective in deterring insider trading because:

• A)there is little incentive for whistleblowers to turn in wrongdoers.
• B)there is no support from the business community.
• C)of the risk/reward ratio.
• D)the SEC is understaffed.

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Definitions:

Net Sales

The amount of revenue a company generates from its sales activities after deducting any returns, allowances, and discounts.

Beginning Inventory

The value of a business's inventory at the start of an accounting period.

Lower-of-Cost-or-Market

An accounting principle that values inventory at the lower of its historical cost or market value.

Lawnmowers

Mechanical devices or machines used for cutting grass to maintain a desired length or appearance of a lawn.