Sarbanes-Oxley (SOX)

question 24

Multiple Choice

Sarbanes-Oxley (SOX) :

• A) created a new form of mail and wire fraud.
• B) requires corporate officers to certify their financial statements.
• C) provides for both fines and jail time for corporate fraud
• D) all of the above.

Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.

Evaluate the conditions under which a cost center might be a more appropriate organizational design choice than a profit center.

Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.

Understand the relationship between division profits and company-wide profits.

---

Definitions:

Group Behavior

The actions, norms, and psychological processes that occur within a social group or between social groups.

Experimental Study

A research method involving the manipulation of variables to test hypotheses and observe the effects on an outcome.

Cohesiveness

The degree to which members of a group are attracted to one another and motivated to stay in the group.

Randomly Assign

The process of allocating people or resources to groups or categories in a way that lacks any specific pattern, order, or objective.