Which of the Following Is a Limitation of SEC Requirements

question 34

Multiple Choice

Which of the following is a limitation of SEC requirements for audit committee membership?

• A) The expanded responsibilities make service on the committee less desirable to competent directors.
• B) External auditors are unwilling to report to an independent audit committee.
• C) The audit committee compromises the external auditor's independence.
• D) Only the United Kingdom and the United States require audit committees, putting corporations in these countries at a disadvantage.

---

Definitions:

Positioning Statement

A brief description of how a product or brand fills a particular consumer need in a way that its competitors do not.

Anticipated Retail Price

The expected price at which a product will be sold to the end consumer in retail markets.

Differentiation Positioning

Differentiation positioning is a marketing strategy where a brand establishes itself apart from competitors by emphasizing unique features, benefits, or aspects of its products or services.

Imbedded, Detachable Wheel

A wheel design that can be integrated into an object and easily removed or detached when necessary.