A Recent Survey of Multinational Corporations Found That the Sarbanes-Oxley

question 8

Multiple Choice

A recent survey of multinational corporations found that the Sarbanes-Oxley Act had the effect of increasing the percentage of U.S.companies with a financial expert on the audit committee from 65% to:

• A)67%
• B)70%
• C)75%
• D)95%

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Definitions:

Profitability Index

A calculation used to assess the attractiveness of an investment, calculated as the present value of future cash flows divided by the initial investment.

Independent Project

A project that can be pursued without affecting the acceptance or funding of other projects, allowing for standalone consideration in decision-making.

Net Present Value

The contrast in the present value of money received and the present value of money spent over a designated duration, applied in capital budgeting to appraise the profitability of a potential investment.

Cash Inflows

Refers to the money received by a business from its various activities, including sales, investments, financing, etc.