Major disadvantages of the Sarbanes-Oxley Act of 2002 (SOX) are the following except:
A) good investor protection
B) increase in compliance costs
C) that it constrains managers' ability to run the firm
D) that it may discourage development of human capital in the firm

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 (SOX) provides good investor protection by requiring increased transparency and accountability from companies. However, it does have several major disadvantages, including an increase in compliance costs, constraints on managers' ability to run the firm, and potentially discouraging the development of human capital in the firm. Therefore, the correct answer is A, which is not a major disadvantage of SOX.

Major Disadvantages of the Sarbanes-Oxley Act of 2002 (SOX) Are