More Intense Application of Governance Mechanisms Such as Mandated by Sarbanes-Oxley

question 45

True/False

More intense application of governance mechanisms such as mandated by Sarbanes-Oxley and Dodd-Frank may cause firms to take on fewer risky projects and thus increase potential shareholder wealth.

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Definitions:

Embryonic Development

In humans, the first 2 months of development following fertilization, during which the major organs are formed.

Radial Cleavage

A type of embryonic development in certain animals where cell divisions occur at right angles to one another, typical in deuterostomes.

Coelom

Body cavity of an animal; the method by which the coelom is formed (or lack of formation) is an identifying characteristic in animal classification.

Protostomes

A group of animals characterized by the blastopore (the first opening in the developing embryo) becoming the mouth, including groups like mollusks and annelids.