American Depository Receipts Are Receipts Which Represent Foreign Shares to U.S

question 61

True/False

American depository receipts are receipts which represent foreign shares to U.S. investors.

---

Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Independent Directors

Board members who do not have a material or pecuniary relationship with the company or its related parties, except for board compensation, ensuring unbiased and objective decisions.

Audit Committees

A subgroup of a company's board of directors responsible for overseeing financial reporting and disclosure.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.