The Sarbanes-Oxley Act, Passed in 2002, ________

question 95

Multiple Choice

The Sarbanes-Oxley Act, passed in 2002, ________.

• A) enhanced U.S. reporting standards for public companies
• B) mandated background checks for all employees
• C) established the Federal Deposit Insurance Corporation (FDIC.) in the United States
• D) provides for regulation of securities issued in the United States

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Definitions:

Direct Liens

Legal claims or encumbrances upon property as security for the payment of a debt or fulfillment of a financial obligation.

Subcontractors

Individuals or companies hired by a primary contractor to perform specific tasks or services as part of a larger project.

Materialmen

Suppliers or vendors of materials, especially in the construction industry, who may have legal rights such as liens against the property they supply materials for.

Foreclosure by Action and Sale

A legal process where a creditor seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.