Test your basic knowledge |

Sarbanes Oxley Act: SOX Corporate Governance

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A report provided to shareholders that contains a balance sheet - an income statement - and a statement of changes in shareholder equity






2. Meetings of a shareholders that may be called to consider and vote on important or emergency issues - such as a proposed merger or amending the articles of incorporation


3. The required number of share that must be represented in person or by proxy to hold a shareholders' meeting - the RMBCA establishes a majority of outstanding share as this term






4. A member of a board of directors who is not an officer of the corporation






5. Public company






6. The number of directors necessary to hold a board meeting or transact business of the board






7. A member of the board of directors who is also an officer of the corporation






8. Sarbanes-Oxley Act of 2002






9. Who signs Report for internal contro?






10. The employee must also service the notice on whom?






11. Employees of a corporation who are appointed by the board of directors to manage the day-to-day operations of the corporation






12. SOX (or SARBOX)






13. Special-purpose cash funds






14. What new employee right was created by SOX?






15. SOX states that __ - __ - __ - __ and __ all constitute retaliation.






16. Public companies and company representatives are not permitted to retaliate against an employee in the __ or __ of his/her employment because the employee provided information - participated in an investigation - or participated in a proceeding relat






17. A date specified in corporate bylaws that determines whether a shareholder may vote at a shareholders' meeting






18. Bank reconcilation steps






19. An agreement between two or more shareholders that stipulates how they will vote their shares






20. A duty of corporate directors and officers to use care and diligence when acting on behalf of the corporation






21. A rule that says directors and officers are not liable to the corporation or its shareholders for honest mistakes of judgment






22. How does this Act define 'harm'?






23. What is required to qualify as a protected whistleblower






24. A written document that a shareholder signs - authorizing another person to vote his or her shares at the shareholders' meetings in the event of the shareholder's absence






25. What procedures must the audit committee of a public company establish?






26. What is one of the most important controls to protect cash received in over-the-counter sales?






27. SOX generally only applies to __ - however - it's whistleblower provision also applies to company representatives.






28. Employees wishing to bring a lawsuit claiming they were discriminated or retaliated against in violation of SOX's whistleblower protection must first do what?


29. A meeting of the shareholders of a corporation that must be held by the corporation to elect directors and to vote on other matters


30. A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation fails to bring the lawsuit






31. Internal Complaint Procedures






32. What about an employee whose complaint is based on a feeling or hunch - in the absence of any evidence?






33. A duty that directors and officers have not to act adversely to the interests of the corporation and to subordinate their personal interests to those of the corporation and its shareholders






34. The company or person must present evidence within __ days after receiving notice of the complaint.






35. An agreement that requires selling shareholders to sell their shares to the other shareholders or to the corporation at the price specified in the agreement






36. A duty that directors and officers of a corporation have to act within the authority conferred upon them by state corporation codes - the articles of incorporation - the corporate bylaws - and the resolutions adopted by the board of directors






37. A system in which a shareholder can accumulate all of his or her votes and vote them all for one candidate or split them among several candidates






38. Sox important Organizations that you must know






39. A panel of decision makers who are elected by the shareholders






40. Rights that give existing shareholders the option of subscribing to new share being issued in proportion to their current ownership interests






41. What provision is enforced by the SEC only?


42. The duties of obedience - care - and loyalty owed by directors and officers to their corporation and its shareholders






43. What is the stated purpose of SOX?






44. To be protected by sox an employee must do one of what activities?






45. Under what conditions may an employee claim protection of SOX?






46. Company representative






47. Remittance Advice






48. Types of proceedings protected under SOX?






49. Failure of a corporate director or officer to exercise the duty of care while conducting the corporation's business






50. Bank statement