With the Enactment of the Sarbanes-Oxley Act in 2002

question 10

Multiple Choice

With the enactment of the Sarbanes-Oxley Act in 2002:

• A) the expense and administrative responsibilities of being a public company are significantly lower.
• B) corporate governance and disclosure requirements of public companies is subject to greater regulation.
• C) the liability risks of officers and directors less stringent.
• D) the recruitment of qualified independent directors is simpler.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Soft Drink Dispensing

The process or equipment used for serving soft drinks, typically seen in restaurants, convenience stores, or vending machines.

Marginal Costs

The augmentation in total expenditures resulting from the production of an additional unit of a product or service.

Law of Diminishing

Refers to the Law of Diminishing Returns, which states that continuing to increase one input, while holding others constant, will eventually result in smaller and smaller additions to output.