Under the Sarbanes-Oxley Act,loans to Top Corporate Officers

question 17

Multiple Choice

Under the Sarbanes-Oxley Act,loans to top corporate officers:

• A) Cannot be made by a publicly traded company under any circumstances
• B) Must bear a fair market interest rate if their employer is a publicly traded company
• C) May not be made directly by their employer if the employer is a publicly traded company, but the employer may serve as a co-signer or guarantor on a loan granted to them by a bank
• D) May be made by significant company shareholders in publicly traded companies as long as these loans satisfy the law's "commercially reasonable terms" requirement

---

Definitions:

Middle-Income

Middle-Income refers to the socioeconomic class of individuals or families whose earnings fall between the upper and lower income brackets.

World Bank

A global financial organization that offers loans and grants to less wealthy nations' governments to support capital projects.

Developing Countries

Many countries of Africa, Asia, and Latin America that are characterized by lack of capital goods, use of nonadvanced technologies, low literacy rates, high unemployment, relatively rapid population growth, and labor forces heavily committed to agriculture.

High-Income

Relating to individuals, households, or countries with significantly higher earnings or GDP per capita compared to the average.