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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. Bank reconcilation steps






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


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






4. An arrangement in which the shareholders transfer their stock certificates to a trustee who is empowered to vote the shares






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






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






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






8. What are the conditions under which OSHA will investigate individual complaints?






9. Why did Congress pass SOX?






10. Bank reconcilation






11. SOX deadlines


12. The employee must file a notice with the administrative law judge assigned to the original complaint __ days before filing the lawsuit.






13. The employee is required to do what relative to protected whistleblowers?


14. If OSHA does not issue a final decision on the employee's complaint within 180 days after the complaint is filed - the employee can do what?






15. Voucher System






16. Elements of Internal Control






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






18. 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






19. 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






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






21. Remittance Advice






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






23. A doctrine that says if a shareholder dominates a corporation and uses it for improper purposes - a court of equity can disregard the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations - also calle






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






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






26. If a hearing is requested - it will be held before an __ who will issue a __ and __.






27. The penalties that may be imposed under SOX.






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






29. What is required to qualify as a protected whistleblower






30. Additional shares of stock distributed as a dividend






31. A system in which each shareholder votes the number of share he or she own on candidates for each of the positions open - also called noncumulative voting






32. Voucher






33. 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






34. 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


35. The Board can either adopt the judge's decision as its own or __ the case itself






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






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






38. Either party may request a review of the judge's decision by filing a __ with the __ within __ days after the date on the judge's order






39. 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






40. Sox important Organizations that you must know






41. Personal liability provision






42. Audit committee


43. A report provided to shareholders that contains a balance sheet - an income statement - and a statement of changes in shareholder equity






44. Objectives of Internal Control






45. SOX (or SARBOX)






46. Bank accounts






47. Bank statement






48. What provision is enforced by the SEC only?


49. 4 elements that must be proven to show usurping of corporate opportunity:


50. If OSHA investigates - it will issue findings and a preliminary order within __ days after the complaint is filed.