Question

TCO F) Which statement is true? In response to the Sarbanes-Oxley Act, the reporting costs were reduced, and many non-U.S. firms that issued new shares of stock decided to place their stock in a U.S. stock exchange. Shareholders in all countries may have more power to effectively sue publicly traded firms if their executives or directors commit financial fraud. In general, common law countries, such as the United States, Canada, and the United Kingdom, allow for more legal protection to shareholders than French civil law countries, such as France and Italy. Global regulations require that shareholders in all countries have the same rights wherever there are stock markets.

Answer 1

In response to the Sarbanes-Oxley Act, the reporting costs were reduced, and many non-U.S. firms that issued new shares of stock decided to place their stock in a U.S. stock exchange. FALSE

Shareholders in all countries may have more power to effectively sue publicly traded firms if their executives or directors commit financial fraud. This sentence construction seems wrong. Shareholders in ALL countries MAY (ALL and MAY together seems incorrect) . If it is ALL countries then the answer is FALSE but if it is SOME countries then the answer is TRUE

In general, common law countries, such as the United States, Canada, and the United Kingdom, allow for more legal protection to shareholders than French civil law countries, such as France and Italy. TRUE

Global regulations require that shareholders in all countries have the same rights wherever there are stock markets.FALSE