Many Potentially Successful "Qui Tam" Cases Never Are Asserted in Court

question 5

Multiple Choice

Many potentially successful "qui tam" cases never are asserted in court because:

• A) The government does not have adequate available resources for pursuing the lawsuit
• B) The private citizen who desires to assert the court case cannot afford the time and expense of litigation
• C) The private citizen who wishes to bring the lawsuit cannot demonstrate that an accounting fraud violation did in fact violate the Sarbanes-Oxley Act
• D) The private citizen and the government do not successfully negotiate a joint profit-sharing arrangement for dividing prospective lawsuit winnings

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Definitions:

Financial Performance

A measure of how well a company can use assets to generate earnings, often evaluated through financial statements and ratios.

Modigliani and Miller

Theorists who developed propositions regarding the impact of capital structure on a company's value and its cost of capital, assuming no taxes and market imperfections.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities.

Capital Markets

Financial markets where debt or equity-backed securities are traded, facilitating the raising of capital by companies and governments.