What Action Did the U

question 66

Multiple Choice

What action did the U. S. Congress take because of the audit failures at Enron, WorldCom and other companies?

• A)Required publicly-traded companies to be audited by a government agency
• B)Required companies to begin preparing an additional financial statement
• C)Passed the Sarbanes-Oxley Act
• D)Passed an amendment to the Securities and Exchange Act

---

Definitions:

Equity Theory

Equity Theory suggests that individuals seek fairness in relationships, feeling satisfied when they perceive that their inputs and outcomes are proportional to those of their comparison others.

Continuance Commitment

Commitment that results when an employee remains with a company because of the high cost of losing organizational membership including monetary and social costs.

Normative Commitment

A commitment to the organization based on feelings of obligation.

Performance Review

A formal assessment where an employee's work performance is evaluated and discussed.