Which of the Following Is a Requirement Under Sarbanes-Oxley

question 98

Multiple Choice

Which of the following is a requirement under Sarbanes-Oxley?

• A)The majority of the board of directors must be independent.
• B)No inside officers can serve on the board of directors.
• C)Lawyers must blow the whistle on their corporate clients engaged in fraud.
• D)all of the above

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Definitions:

Accounting Profits

The financial gains of a company calculated by subtracting total expenses from total revenues according to standard accounting practices.

Economic Profits

The financial difference between what a business earns in total revenue and what it spends, considering both explicit and indirect costs.

Implicit Costs

The opportunity costs involved in using resources that a firm already owns, for which it does not make a direct payment.

Accounting Profits

The total revenue of a business minus the explicit costs associated with producing goods or services, not accounting for implicit costs.