Asked by Denise Maxim on Jul 21, 2024
Verified
The best example of a law which governs the behaviour of top executives is the Sarbanes-Oxley Act.
Sarbanes-Oxley Act
A U.S. law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations.
Top Executives
Senior-level managers and officers in an organization who are responsible for overseeing its strategic direction and making high-level decisions.
- Grasp the legal framework governing corporate behavior, with a focus on the Sarbanes-Oxley Act.
Verified Answer
KT
Kristen TorresJul 27, 2024
Final Answer :
True
Explanation :
The Sarbanes-Oxley Act was passed in response to accounting scandals, such as the Enron scandal, and aims to protect investors by ensuring accurate financial reporting and disclosure by public companies. It includes provisions for top executives, such as requiring CEOs and CFOs to certify the accuracy of financial statements and imposing penalties for fraudulent activity.
Learning Objectives
- Grasp the legal framework governing corporate behavior, with a focus on the Sarbanes-Oxley Act.
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