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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. 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






2. 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






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






4. If a public company fails to adopt the complaint procedures mandated by SOX what may happen?






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

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

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7. Remittance Advice






8. Bank reconcilation steps






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






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






11. Either party may object to these findings and request a hearing within __ days after receiving the finding and order.






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






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






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






15. Usurping of corporate opportunity

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16. Bank reconcilation






17. The penalties that may be imposed under SOX.






18. The criminal provision of SOX






19. 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






20. An agreement that requires a selling shareholder to offer his or her shares for sale to the other parties to the agreement before selling them to anyone else






21. 'The employee's claim of shareholder fraud does not have to be correct.'






22. 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






23. Even if the employee provides evidence of individual complaints - OSHA will not investigate under what condition?






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






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






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






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






28. A requirement that a greater than majority of shares constitutes a quorum of the vote of the shareholders






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






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






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






32. 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






33. Why did Congress pass SOX?






34. How does this Act define 'harm'?






35. The criminal provision could apply to anyone who ____________ - whether or not the perpetrator works for or has any association with a public company






36. 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?






37. Voucher System






38. 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






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






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






41. Personal liability provision






42. Sarbanes-Oxley Act of 2002






43. Elements of Internal Control






44. Bank statement






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

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46. SOC record keeping requirements






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






48. 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






49. What provision is enforced by the SEC only?

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50. Additional shares of stock distributed as a dividend