The Sarbanes-Oxley Act Requires That Publicly Traded Companies

question 14

Multiple Choice

The Sarbanes-Oxley Act requires that publicly traded companies:

• A) Adopt formal policies that prohibit them from granting employees exemptions from company "conflict of interest" rules
• B) Decide "conflict of interest" issues based on an employee's individual facts and circumstances, rather than based on arbitrary guidelines
• C) Disclose decisions concerning employee "conflict of interest" waiver requests on the company's website or in some other widely accessible format
• D) Disclose to the SEC the rationale for any decisions that waive the application of their "conflict of interest" in a particular situation

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Definitions:

Unit-price Elastic

Describes a situation where the percentage change in quantity demanded is equal to the percentage change in price, indicating a unitary elasticity of demand.

Greens Fees

The charges imposed by a golf course for the right to play on the course.

Quantity Effect

The change in the quantity of a product demanded or supplied in response to a change in price.

Total Revenue

The total income a firm receives from selling its goods or services, calculated by multiplying the price per unit by the number of units sold.