1. Which of the following is NOT a requirement of the Sarbanes-Oxley Act of 2002?

Multiple Choice

• The compensation committee must be appointed by an outside director

• The CEO and CFO must sign off personally on corporate accounting results

• The board of directors must meet in executive session

• More board of directors members are independent

2. A firm decides to pay for a small investment project through a $1 million increase in short-term bank loans. This is best described as an example of a(n):

Multiple Choice

• financing decision.

• investment decision.

• capital budgeting decision.

• capital expenditure decision.