What Is the Primary Purpose for the SEC's Requirement to Disclose

question 64

Multiple Choice

What is the primary purpose for the SEC's requirement to disclose all transactions of senior management?

• A)To make the public aware that members of management are typically greedy.
• B)To allow employees the opportunity to see the salaries commanded by management so that they can negotiate proportional increases.
• C)To hold management accountable for any unacceptable personal use of corporate assets.
• D)To give shareholders the indication that management is earning compensation through every possible avenue,as deserved.

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Definitions:

Likert Scale

A psychometric scale commonly involved in research that employs questionnaires, used to gauge attitudes, values, or responses involving degrees of agreement or disagreement.

Environmental Protection

Efforts and policies aimed at preserving the natural environment from degradation or pollution to sustain ecological balance and conserve resources for future generations.

Values

Core beliefs or standards that guide behavior and decision-making, reflecting what is important to an individual or society.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding contradictory beliefs or values, leading to an alteration in one of the conflicting elements to reduce the dissonance.