What Action Did the U

question 42

Multiple Choice

What action did the U.S.Congress take because of the audit failures at Enron,WorldCom and other companies?

• A)Required publicly-traded companies to be audited by a government agency
• B)Passed the Sarbanes-Oxley Act
• C)Required companies to begin preparing an additional financial statement
• D)Passed an amendment to the Securities and Exchange Act

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Definitions:

HMOs

Health Maintenance Organizations, a type of health insurance plan that limits coverage to care from doctors who work for or contract with the HMO.

PPOs

Preferred Provider Organizations, a type of health plan that contracts with medical providers to create a network of preferred doctors and hospitals for its members.

DRG Payment System

The Diagnosis-Related Group (DRG) payment system is a method used by Medicare and some other insurance programs to categorize hospitalization costs and determine how much to pay for a patient's hospital stay.

Fee-For-Service System

A pricing structure where services are itemized and each is charged individually.