Which act states executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company?
A) Sarbanes-Oxley Act
B) Defense Authorization Act
C) Administrative Procedure Act
D) Contract Work Hours and Safety Standards Act

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act was passed in 2002 to protect investors from fraudulent accounting practices by corporations. It established new or expanded requirements for corporate governance, accounting disclosures, and the retention of electronic records. One provision of the act is that executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company.

Which Act States Executives Cannot Retain Bonuses or Profits from Selling