What Is a Key Provision Regarding CEOs in the Sarbanes-Oxley

question 27

Multiple Choice

What is a key provision regarding CEOs in the Sarbanes-Oxley Act of 2002?

• A) CEOs cannot hold options in the firms they direct.
• B) CEOs total compensation cannot exceed a limit set by the SEC.
• C) CEOs are personally liable for any mistakes on company financial filings.
• D) CEOs are prohibited from commenting on company filings to the SEC.

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Definitions:

Corporate Veil

A legal concept that separates the liability and actions of a corporation from its shareholders, protecting personal assets.

Shareholders

Individuals or entities that own shares in a corporation, granting them ownership interests and typically some level of influence over the corporation's decisions.

Judgment

A court's final determination of the rights and obligations of the parties in a case.

Union Contract

A legally binding agreement between a labor union and an employer outlining the terms of employment, wages, benefits, and working conditions.