The Sarbanes-Oxley Act (SOX)________

question 134

Multiple Choice

The Sarbanes-Oxley Act (SOX) ________.

• A) requires independent accountants to take responsibility for the accuracy and completeness of the financial reports
• B) created the SEC
• C) ensures that financial scandals will no longer occur
• D) requires companies to take responsibility for the accuracy and completeness of their financial reports

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Definitions:

Recession

A transient phase of declining economic performance, with diminished trade and industrial production, often determined by a sequential fall in GDP for two quarters.

Economic Growth

An increase in the productive capacity of an economy, often measured by the rise in real GDP over a period of time.

Decision-Making Processes

Processes through which individuals or organizations make choices among alternative courses of action to achieve their objectives.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of prioritizing resource allocation.