While the Sarbanes-Oxley Act (SOX)contains Many Provisions,the Overall Intent of the Legislation

question 33

Multiple Choice

While the Sarbanes-Oxley Act (SOX) contains many provisions,the overall intent of the legislation was to improve the accuracy of information given to both boards and to shareholders.SOX attempted to achieve this goal in all of the following ways except

• A) overhauling incentives and independence in the auditing process.
• B) mandating the separation of the positions of CEO and Chairman of the Board.
• C) stiffening penalties for providing false information.
• D) forcing companies to validate their internal financial control processes.

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Definitions:

Product Differentiation

The process used by businesses to distinguish their products from similar offerings by competitors to attract a specific target market.

Coke

A carbonated soft drink that is produced by The Coca-Cola Company, or a fuel made by heating coal or oil in the absence of air.

Price Fixing

An illegal agreement between participants in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain market conditions so that the price is maintained.

Cooperative Behavior

Actions taken by individuals or organizations that are designed to benefit others or achieve a common goal through collaboration.