An auditor, performing an "attest" audit of a public company, informs the audit committee of the Board of Directors that an illegal act is likely to have occurred. After a period of time, during which remedial actions are not taken, the auditor issues a report of conclusions to the Board. What steps is the Board then required to take quickly, under the Securities Exchange Act of 1934?
I. Contact local law enforcement
II. Notify the SEC in writing
III. Send the auditor a copy of the written notification
A) I and II only
B) I and III only
C) II and III only
D) I, II and III
Answer: C
Economics
- If the Federal Reserve creates new money to finance the government's deficit, then it is monetizing the deficit.(True/False)
- If the current price is above equilibrium price in a competitive market, we should expect a shortage of the product.(True/False)
- Any time the government sets an artificially low price for a product, it increases the possibility of a shortage of that product.(True/False)
- In cost-push inflation, prices go up because of higher cost of production.(True/False)
- When the Federal Reserve lowers the reserve requirement, the amount of money in circulation should tend to decrease.(True/False)
- A study of United States imports and exports shows that most of the United States' negative balance of trade is caused by imports of oil and automobiles.(True/False)
- "Dumping" is selling products to foreign countries for less than the price charged.(True/False)
- U.S. businesses were the first to start the trend toward multinational corporations.(True/False)
- Import quotas are no longer permitted under GATT.(True/False)
- Recession is a lesser form of inflation.(True/False)
- Prices help to determine the opportunity cost of a purchase.(True/False)
- The equilibrium price is where supply and demand curves intersect.(True/False)
- More than half of every sales dollar goes to profits.(True/False)
- Practical economists would order antipollution or clean-up measures only when the gains fro reduces pollution damage exceeded the cost of cleaning up or preventing that amount of pollution.(True/False)
- Higher GNP figures resulting form inflation do not represent an increase in output.(True/False)
- Political freedom and economic freedom are unrelated.(True/False)
- Interest on a bond must be paid whether the issuing corporation makes a profit or not.(True/False)
- A mutual fund is a single investment made and managed by one individual.(True/False)
- According to the Taft-Hartley Act, the president may delay a strike for 80days if it is harmful to the nation's safety and health.(True/False)
- Prices are an ineffective way to deal with scarcity.(True/False)
- The supply curve slopes downward from left to right.(True/False)
- A flexible exchange rate system is a system in which the laws of supply and demand are allowed to set the prices, or exchange rates, among types of money.(True/False)
- Environmental regulation can cause productivity measure to fall(True/False)
- Unlike other major energy sources, the supply of fossil fuels such as petroleum, natural gas, and coal are unlimited (True/False)
- The demand curve for a firm in a competitive environment is_______.