Some, Especially Those in Business, Complain That the Sarbanes-Oxley Act

question 43

Multiple Choice

Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation

• A)is excessively complex and financially burdensome.
• B)is not necessary.
• C)is fair to all firms.
• D)has reduced restatements of financial reports.
• E)is too simplistic.

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Definitions:

Excess Supply

A market situation where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers at the current price.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price point.

Deadweight Loss

Deadweight loss refers to the inefficiency caused in the market when the allocation of resources is not optimal, often resulting from tariffs, taxes, or other restrictions.

Price Floor

A price floor is a government-imposed minimum price charged for a product, aimed at preventing prices from dropping too low.