Which of the Following Are Main Functions/purposes of the Sarbanes-Oxley

question 22

Multiple Choice

Which of the following are main functions/purposes of the Sarbanes-Oxley Act of 2002?

• A)To issue cease-and-desist orders against violators of any federal securities law and to seek civil monetary penalties against any violators.
• B)To create rules to require brokers and dealers to provide information concerning prices and risks associated with the penny-stock market and to seek civil monetary penalties against those who violate such rules.
• C)To permit the Securities and Exchange Commission to exempt persons,securities,and transactions from securities regulations,thereby promoting private-sector economic growth.
• D)To increase corporate disclosure requirements and penalize violators of securities laws more heavily.
• E)To decrease the regulatory authority of the Securities and Exchange Commission and to promote corporate self-regulation in terms of the issuance and sale of corporate stock.

---

Definitions:

Proprietorship

A business owned and operated by a single individual, characterized by the simplicity of setting up and the sole responsibility for any of its debts or liabilities.

Financial Difficulty

A situation where an individual, business, or government faces challenges in meeting its debt obligations or managing its monetary affairs.

Bankruptcy

A legal process where individuals or organizations declare their inability to pay off their debts.

Sole Proprietorship

A firm with a single owner who has the right to all profits but who also bears unlimited liability for the firm’s losses and debts.