Which of the following are results related to the enactment of the Sarbanes-Oxley Act of 2002?

A firm which opts to "go dark" in response to the Sarbanes-Oxley Act:    A.  must continue to provide audited financial statements to the public. B.  must continue to provide a detailed list of internal control deficiencies on an annual basis. C.  can provide less information to its shareholders than it did prior to "going dark". D.  can continue publicly trading its stock but only on the exchange on which it was previously listed. E.  ceases to exist. Refer to section 1.3

44.

Which of the following are results related to the enactment of the Sarbanes-Oxley Act of 2002? I. increased foreign stock exchange listings of U.S. stocks II. decreased compliance costs III. increased privatization of public corporations IV. increased public disclosure by all corporations    A.  I and III only B.  II and IV only C.  I, II, and III only D.  II, III, and IV only E.  I, III, and IV only Refer to section 1.3

45.

Which one of the following actions by a financial manager is most apt to create an agency problem?    A.  refusing to borrow money when doing so will create losses for the firm B.  refusing to lower selling prices if doing so will reduce the net profits C.  refusing to expand the company if doing so will lower the value of the equity D.  agreeing to pay bonuses based on the market value of the company stock rather than on the firm's level of sales E.  increasing current profits when doing so lowers the value of the firm's equity Refer to section 1.4

46.

Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. I. compensation based on the value of the stock II. stock option plans III. threat of a company takeover IV. threat of a proxy fight    A.  I and II only B.  III and IV only C.  I, II, and III only D.  I, III, and IV only E.  I, II, III, and IV Refer to section 1.4

If a firm sells its crown jewels when threatened with a takeover attempt, the firm is employing a strategy commonly referred

The primary purpose of a flip-in provision is to:    A.  increase the number of shares outstanding while also increasing the value per share. B.  dilute a corporate raider's ownership position. C.  reduce the market value of each share of stock. D.  give the existing corporate directors the sole right to remove a poison pill. E.  provide additional compensation to any senior manager who loses his or her job as a result of a corporate takeover. Refer to section 26.7

51.	If a firm sells its crown jewels when threatened with a takeover attempt, the firm is employing a strategy commonly referred to as a _____ strategy.    A.  scorched earth B.  shark repellent C.  bear hug D.  white knight E.  lockup Refer to section 26.7

52.	Which one of the following defensive tactics is designed to prevent a "two-tier" takeover offer?    A.  bear hug B.  poison put C.  shark repellent D.  dual class capitalization E.  fair price provision Refer to section 26.7

53.

Which of the following have been suggested as reasons why the stockholders in acquiring firms may not benefit to any significant degree from an acquisition? I. the price paid for the target firm might equal the target firm's total value II. management may have priorities other than the interest of the stockholders III. the takeover market may not be competitive IV. anticipated merger gains may not be fully achieved    A.  I and III only B.  II and IV only C.  I, III, and IV only D.  I, II, and IV only E.  I, II, III, and IV Refer to section 26.8