Which of the Following Statements Is FALSE

question 10

Multiple Choice

Which of the following statements is FALSE?

• A)The Cadbury Commission stiffened the criminal penalties for providing false information to shareholders.
• B)The Exchange Acts of 1933 and 1934,among other things,established the Securities and Exchange Commission (SEC)and prohibited trading on private information gained as an insider of a firm.
• C)Many of the problems at Enron,WorldCom,and elsewhere were kept hidden from boards and shareholders until it was too late.In the wake of these scandals,many people felt that the accounting statements of these companies,while often remaining true to the letter of GAAP,did not present an accurate picture of the financial health of a company.
• D)While one study found that those firms that separated the position of CEO and chairman performed better,another found no relation between the independence of key board committees and firm performance in the post-Cadbury era.

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Definitions:

Acute Stress Disorder

A psychiatric condition characterized by the development of severe anxiety and other symptoms within one month after exposure to a traumatic event.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.

Car Accident

A collision involving one or more vehicles, often resulting in property damage and personal injuries.

Unusually Anxious

Experiencing higher levels of anxiety than what is typically expected in a given situation or context, often needing clinical attention.