1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mademuasel [1]
3 years ago
12

The Sarbanes-Oxley Act: A. substantially increases the penalties for corporate wrongdoing. B. gives corporations greater freedom

from government control. C. adopts the theory of allocational efficiency. D. motivates executives to inflate reports of corporate profits.
Business
2 answers:
Sonja [21]3 years ago
7 0

Answer:

A. substantially increases the penalties for corporate wrongdoing.

Explanation:

The Sarbanes-Oxley Act of 2002 is a federal law that instituted thorough auditing and financial regulations for public companies. This legislation was created by Lawmakers to protect investors, employees as well as the public from fraudulent financial practices and accounting mishaps. It was passed as a result of the accounting scandals of major corporations including Enron and WorldCom, which resulted in losses running into billions of dollars by investors. These massive losses negatively affected the financial markets and put investors on high alert

The law reduces the freedom of corporations by the government, hence, <u>option B is wrong</u>

The law was passed to curb fraudulent practises not to adopt the theory of allocational efficiency, hence, <u>option C is wrong</u>

The law <u>discourages</u> executives to inflate reports of corporate profits, hence, <u>option D is wrong</u>

The law substantially increases the penalties for corporate wrongdoing,  hence, <u>option A is right</u>

Mamont248 [21]3 years ago
5 0

Answer: The Sarbanes-Oxley Act increases the penalties for corporate wrongdoing. (A)

Explanation:

The Sarbanes-Oxley Act was passed to reduce corporate fraud. The Act led to the creation of the Public Company Accounting Oversight Board which was in charge of overseeing the accounting industry. Protection was given to whistleblowers and giving company loans to executives was banned. Chief executive officers were also held responsible for errors made in accounting audits.

The Sarbanes-Oxley Act was as a result of financial scandals involving publicly traded firms such as WorldCom, Tyco International Plc and Enron Corporation in 2000. The frauds in the companies affected the confidence of investors which eventually led to the Act.

You might be interested in
Income elasticity measures the:____.
larisa [96]

Answer:

C. Responsiveness of quantity demanded to a percentage change in income.

Explanation:

Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.

Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.

Income elasticity is used to find out if a good is a necessity or a luxury good.

The demand for goods that are a necessity does not change with a change in income.

However demand for a luxury good increases as income increases and vice versa

8 0
2 years ago
Taxation of Business Entities, 2016 edition7-65.) Wolverine Corporation made a distribution of $500,000 to Jim Har Inc. in par-t
marusya05 [52]

Answer:

a. Dividend

b. $500,000

Explanation:

a. As in the given case, the character of any income or gain recognized is the dividend of $500,000 which eligible him to avail 100% deduction of the dividend amount

b. The reduced amount would be lower of the distributed amount or 50% of Total E&P

Distributed amount is $500,000

And, the 50% of total E&P is =  $8,000,000 × 50% = $4,000,000

So, the lesser amount is $500,000 which is reduced its total E&P

5 0
3 years ago
What is an apprenticeship?
san4es73 [151]
B. Formal training that combines classroom instruction with learning on the job.

That's how I've understood it when I took business in high school.
7 0
3 years ago
Read 2 more answers
In immanuel wallerstein's view, the global economic system is divided between nations that control wealth and nations from which
Umnica [9.8K]

Conflict Perspective

Unlike the structural function theory, conflict perspective sees different economies as being in competition with each other for power and resources.

4 0
3 years ago
A quota on imported avocadoes ______________ the price of avocadoes, _____________ consumers’ surplus for avocado buyers, ______
guajiro [1.7K]

Answer:

The correct answer is: increase; reduce; increase; does not generate; consumers; producers and government

Explanation:

A quota is a trade restriction that limits the quantity imported of a good. An import quota on avocadoes will reduce the supply of avocadoes. This will cause the price of avocadoes to increase. This increase in price will reduce the consumer's surplus and increase the producer surplus.  

A quota does not generate any revenue for the government.  

This imposition of quota creates a deadweight loss for the society as the loss in consumer surplus is greater than the increase in producer surplus and government revenue.

4 0
3 years ago
Other questions:
  • Many depressants, including alcohol, reduce your __________.
    14·1 answer
  • The new employee at Cork Manufacturing reported tp work and the employee reviewed the following information that was audited by
    9·1 answer
  • If a defendant seeks to throw out evidence obtained by law enforcement officers during a search and seizure, and interrogation,
    8·1 answer
  • Suppose that Italy and Germany both produce beer and stained glass. Italy's opportunity cost of producing a pane of stained glas
    15·2 answers
  • Sweet Treats common stock is currently priced as $36.72 a share. The company just paid $2.18 per share as its annual dividend. T
    5·1 answer
  • On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1.00 par, common shares, t
    12·1 answer
  • The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an e
    11·1 answer
  • Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales a
    14·1 answer
  • Which is not an object to taxation?
    15·1 answer
  • Identify which statement is true of specialty products. Group of answer choices They are made directly available to a consumer t
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!