The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges. OTrue False

Q: 1.Discuss why might a director argue reliance as a defence to a breach of duty and care?2.Explain…

A: Share helps in representing the unit of an equity ownership in corporation. Shareholders used to…

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

Q: Corporations with simple capital structures (only Common Stock issued) need not present Earnings per…

A: true  Corporations with simple capital structures (only Common Stock issued) need not present…

Q: True or False: The Sarbanes Oxley Act (SOX) only applies to public companies.

A: The Sarbanes Oxley Act (SOX) cover responsibilities of Board of Directors regarding reporting and…

Q: 30) If no-par stock is issued without a stated value, then A) the par value is automatically S1 per…

A: No par value stock means the shares are issued without having a face value. The investor can…

Q: a controller argues that when a company issues stock for less than current value, the value of…

A: Dilution refers to reduction in the current shareholding of the existing stockholders due to mainly…

Q: The dividend is not a legal liability until the board of directors has declared it.  true or false.…

A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…

Q: 15) When a corporation sells shares directly, it pays a brokerage house to issue the shares. O True…

A: Typically, when a corporation sells shares directly to investors, it is referred to as a "direct…

Q: A stock dividend: ) Is not a liability on the corporation's balance sheet. Does not reduce a…

A: A stock dividend is a dividend that is made to the shareholders in shares and not in cash. The stock…

Q: At the date of exchange or conversion of preferred shares to common shares, no gains or losses are…

A: Preferred stock: Preferred stock have a preference to receive dividend that of common stock when…

Q: Publicly traded companies have many reporting requirements that non-publicly traded companies do…

A: Publicly traded companies: A publicly traded company or corporate having their shares traded on a…

Q: Is there an obligation to cease trading when a company is insolvent? If there is not, what are the…

A: Insolvency If the company faces sever financial crunch into the business or face cash shortage into…

Q: Which of the following statements are true regarding corporations? Note: You may select more than…

A: A business can be run as different types like sole proprietorship, partnership, corporation etc.   A…

Q: arge, well-known public companies can reduce the time required to register and issue securities by…

A: When a company offers its shares for sale to the public it has to register and then issue securities…

Q: Treasury stock is Stock of other corporation owned by a corporation A U.S. government security A…

A: Treasury stock is the stock that a company purchases out of its own stock. It can be done for…

Q: Explain whether the following statement is true or false: Only weak companies issuedebentures.

A: A long-term liability that is issued by a company with a fixed interest rate to raise the fund for…

Q: The Sarbanes-Oxley (SOX) Act of 2002 is federal legislation designed to protect publicly held…

A: The Sarbanes-Oxley Act (SOX) of 2002 is a federal law enacted in response to corporate accounting…

Q: If the articles of incorporation do not include a pre-emptive right, the firm has a choice of…

A: Pre-emptive rights: the firm can issue the shares first to the existing shareholders and the…

Q: -) Which of the following is NOT a reason companies purchase their own stock as treasury stock? O…

A: Treasury stock, also known as treasury shares or reacquired shares, refers to shares of a company's…

Q: Which one of the following terms best describes the information you know about a company that will…

A: In the world of finance and securities trading, understanding and appropriately categorizing…

Q: hich of the following transactions would most likely affect shareholders’ equity? Group of answer…

A: The shareholders' equity is recorded in the statement of financial position of the business i.e.…

Q: The Securities Exchange Act of 1934 Multiple Choice Prohibits blue sky laws. Regulates the public…

A: The purpose of The Securities exchange Act 1934 was incorporated to ensure  regulating the secondary…

Q: Discuss the reason(s) behind the conflict of interest between corporate stockholders and…

A: Corporate Stockholders: A stockholder is the owner of the shares purchased of a company. There are…

Q: When you are purchasing a company stock, you are purchasing part of the company.

A: Companies issue stocks or shares for raising money from those investors who want to invest their…

Q: stock holders are not liable for a corporation's actions or debt true or false

A: Corporation is an legal entity which have own identity. The shock holders of corporation is known as…

Q: Discuss the arguments for each position. Some individuals maintain that the only proper accounting…

A: The argument for this statement is this that whether to use current value or not is totally depends…