Which of the Following Statements Is True of the Sarbanes-Oxley

question 28

Multiple Choice

Which of the following statements is true of the Sarbanes-Oxley Act of 2002?

• A) It requires foreign accounting firms to register with the Public Company Accounting Oversight Board if they audit public companies.
• B) The act reduces criminal penalties for securities fraud.
• C) Its registration and reporting provisions apply only to U.S. companies listed on U.S. securities exchanges.
• D) Section 106 of the act deals expressly with national accounting firms.

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Definitions:

Vertical Merger

A vertical merger involves the combination of companies that operate at different stages of the production process for a specific good or service, aiming to increase efficiency or control over supply chains.

Conglomerate Merger

A type of merger where two or more companies in unrelated business sectors combine.

Monopolizing

involves the domination of a market by a single producer or company, reducing competition and potentially controlling prices and supply in that market.

Abusive Means

Practices or methods that are harmful, manipulative, or intended to exploit or oppress individuals or groups.