Which of the Following Describes Why Canada's Regulation Changes Following

question 9

Multiple Choice

Which of the following describes why Canada's regulation changes following the Enron scandal were less strict than those in the United States?

• A)Canada has a national securities commission that can monitor firms more closely than the SEC in the United States.
• B)The same scale of corporate fraud had yet to be experienced in Canada.
• C)Canadian firms tend to have higher market capitalizations than U.S.firms,and the reporting costs of increased regulation place a greater burden on larger firms.
• D)Canada has a much larger percentage of public firms with a controlling shareholder,and these firms require less oversight than firms without concentrated ownership.
• E)Since Canadian firms report according to IFRS,their financial statements are likely to be more accurate.

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Definitions:

Functional Managers

Managers who are responsible for one area, such as finance, marketing, production, personnel, accounting, or sales.

Technical Expertise

Specialized knowledge or skills in a specific field or discipline, often relating to the application of scientific or technical knowledge.

Line Workers

Employees who are directly involved in the operational processes of a company, typically in manufacturing or production.

Planning

The process of making plans for something, including setting goals, strategies, and actions.