In Addition to Requiring That CEOs Personally Certify the Accuracy

question 142

Multiple Choice

In addition to requiring that CEOs personally certify the accuracy of financial statements, the Sarbanes-Oxley Act of 2002 also requires that

• A)CEOs conduct audits of their corporations themselves.
• B)firms raise funds for expansion through the sale of bonds only, not stocks.
• C)auditors disclose any potential conflicts of interest.
• D)corporations issue financial statements monthly rather than quarterly.

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Definitions:

Dumping

Selling products in a foreign market at a price below the cost to produce them, often considered a form of predatory pricing.

Cream Skimming

The practice of selectively choosing the best or most profitable customers, clients, or opportunities, often leaving less desirable ones for others.

Import Substitution

A development strategy that emphasizes domestic manufacturing of products that were imported.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.