According to Zhang (2007),which of the Following Is Not a Negative

question 5

Multiple Choice

According to Zhang (2007) ,which of the following is not a negative effect of introducing the Sarbanes-Oxley Act (2002) in the US?

• A) The out-of-pocket compliance costs are significant.
• B) Executives complain that complying with the rules diverts their attention from doing business.
• C) The Act exposes managers and directors to lower litigation risks and penalties.
• D) CEOs take less risky actions, consequently changing their business strategies and potentially reducing firm value.

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Definitions:

Liable

Being legally responsible for something, particularly in the context of legal judgments or obligations.

Criminal Conduct

Engaging in actions or behaviors that are prohibited by law and punishable by the state.

Leasehold

An interest or estate in real property granting possession to the lessee (or tenant) for a certain predefined period, under a lease agreement.

Bailment

Bailment is a legal relationship in which physical possession of personal property is transferred from one party to another, with the understanding that the property will be returned.