Which of These Is Not Generally Regarded as a Reason

question 12

Multiple Choice

Which of these is not generally regarded as a reason for the spate of dubious accounting practices by public companies which led to the enactment of the Sarbanes-Oxley Act in the USA and similar legislation in other jurisdictions?

• A)Pressure on managers to meet investors' unrealistic expectations for continually rising profits.
• B)Greed by executives.
• C)Lack of accounting standards.
• D)Too rapid growth financed by borrowing, which leads to a liquidity crisis.

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Definitions:

Patterns

In finance, patterns refer to recognizable formations on the charts of financial instruments that traders use to predict future movements.

Moving Average

A technical analysis indicator that averages a security's prices over a specified period to smooth out price data.

Current Price

The latest trading price of a security, commodity, or currency.

Falling Prices

Falling prices indicate a decrease in the cost of goods and services over a period, which can be symptomatic of deflation or market corrections.