With Respect to Whistleblowing, the Sarbanes-Oxley Act

question 68

Multiple Choice

With respect to whistleblowing, the Sarbanes-Oxley Act:

• A) Protects employees of publicly traded companies who provide evidence in fraud cases
• B) Confers legal protection on managers who reported wrongdoing by top executives
• C) Confers legal protection on the board of directors for fraudulent actions by management
• D) Protects auditors who blow the whistle to the SEC

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Definitions:

Financial Advantage

The benefit gained in a financial context, such as lower costs, higher revenues, or competitive superiority.

Outside Supplier

An entity or company that provides goods or services to another company from outside the purchasing company's internal structure.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Net Operating Income

The total profit derived from a company's normal business operations after subtracting operating expenses but before taxes and interest.