The Concept of "Qui Tam

question 19

Multiple Choice

The concept of "qui tam":

• A) Was first established in the United States by the False Claims Act and has been mimicked by various state laws
• B) Was first established in the United States by the False Claims Act, but gained widespread application when it was enacted as a core element of the Sarbanes-Oxley Act
• C) Is an effective deterrent in Europe against accounting fraud and, according to critics, should be adopted in the United States
• D) Enables the SEC to recover an equal share of all investor recoveries obtained in private investor lawsuits

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operations.

Markdown

A reduction from the original or retail price of goods or services, typically to stimulate sales or clear out inventory.

Invoice

A paper provided by the vendor to the purchaser detailing the goods or services rendered and the total charge.

Discount

A reduction applied to a regular price or rate, often used to encourage purchase or prompt payment.