Because of Sarbanes-Oxley, Publicly Traded Companies Must Develop _____ to Assist

question 36

Multiple Choice

Because of Sarbanes-Oxley, publicly traded companies must develop _____ to assist in maintaining transparency in financial reporting.

• A)ethics officers
• B)ethics programs
• C)codes of ethics
• D)legal counsel
• E)accountants

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Definitions:

Acquisition

Gaining control over a different corporation through the acquisition or trade of shares.

Bargain Purchase

Occurs when a company acquires an asset at a price significantly below its fair market value.

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, known as the parent company.

Assets

Resources controlled by a business from which future economic benefits are expected to flow to the business.