The 11 sections (titles) in the Sarbanes-Oxley Act of 2002 _____.
A)require corporations to payout all the earnings as dividends
B)establish standards for accountability and responsibility in reporting financial information
C)allow management to take actions resulting in large gains to them and losses to stockholders
D)allow management to use confidential information for personal gains
E)require stockholders to make capital structure decisions

Question

The 11 sections (titles) in the Sarbanes-Oxley Act of 2002 _____. 
A)require corporations to payout all the earnings as dividends
B)establish standards for accountability and responsibility in reporting financial information
C)allow management to take actions resulting in large gains to them and losses to stockholders
D)allow management to use confidential information for personal gains
E)require stockholders to make capital structure decisions

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 primarily establishes standards for accountability and responsibility in reporting financial information, including requirements for financial disclosure, internal controls, and certifications by management. It does not relate to decisions on dividends or capital structure, and it seeks to prevent management from benefiting at the expense of stockholders by using confidential information or taking actions resulting in unequal gains or losses.

The 11 Sections (Titles) in the Sarbanes-Oxley Act of 2002