The Sarbanes-Oxley Act Requires That Publicly Traded Companies

question 14

Multiple Choice

The Sarbanes-Oxley Act requires that publicly traded companies:

• A) Adopt formal policies that prohibit them from granting employees exemptions from company "conflict of interest" rules
• B) Decide "conflict of interest" issues based on an employee's individual facts and circumstances, rather than based on arbitrary guidelines
• C) Disclose decisions concerning employee "conflict of interest" waiver requests on the company's website or in some other widely accessible format
• D) Disclose to the SEC the rationale for any decisions that waive the application of their "conflict of interest" in a particular situation

---

Definitions:

Number Of Employees

The overall number of people working for a firm, encompassing both those in full-time and part-time positions.

Step-down Method

A cost allocation method used in accounting to distribute overhead costs to various departments or products.

Machine Hours

The total number of hours that machinery is operational during a certain period.

Number Of Employees

A count of all individuals working for a company, including both full-time and part-time staff.