The Sarbanes-Oxley Act of 2002

question 32

Multiple Choice

The Sarbanes-Oxley Act of 2002

• A)has had the consequence that many foreign firms have de-listed in the U.S. exchanges and listed their shares on the London Stock Exchange and other European exchanges.
• B)has increased the pace of foreign firms listing their shares in the U.S.
• C)a and b are both true
• D)all of the above

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Definitions:

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and possibly seek compensation for damages.

Exemption Clause

A contractual term that limits one party's liability for breach of contract, negligence, or other unforeseen circumstances.

Extra Consideration

An additional benefit or payment required to finalize an agreement or contract, beyond the initially agreed terms.

Contract Discharge

The conclusion of a contractual obligation, either through completion of the contract terms, mutual agreement, or other legal methods.