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:

Hamburger

a popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bread roll or bun.

Monthly Income

The total earnings received on a monthly basis from all sources such as employment, investments, and entitlements.

Beer

An alcoholic beverage made from fermentation of cereal grains, commonly barley, with hops for flavoring.

Price

The price to be paid to secure a good, service, or asset.