The Sarbanes-Oxley Act Improves Corporate Governance of MNCs Because It

question 15

Multiple Choice

The Sarbanes-Oxley Act improves corporate governance of MNCs because it:

• A) makes executives more accountable for verifying financial statements
• B) eliminates stock options as a form of compensation
• C) ties executive compensation to firm performance
• D) places a limit on the amount of funds that managers can spend

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Definitions:

Intrinsic Reasons

Motivations that come from within an individual, such as personal satisfaction, interest, or enjoyment of a task, rather than from external pressures or rewards.

Extrinsic Reasons

Motivations based on external rewards or pressures rather than internal satisfaction or fulfillment.

Gender Differences

The distinctions in characteristics, behaviors, roles, and cultural expectations traditionally associated with being male or female in a society.

Meta-analysis

A statistical analysis that combines the results of multiple scientific studies to arrive at a conclusion that has greater statistical power.