The Sarbanes-Oxley Act:

A. motivates executives to inflate reports of corporate profits.

B. adopts the theory of allocational efficiency.

C. substantially increases the penalties for corporate wrongdoing.

D. gives corporations greater freedom from government control.

The Sarbanes-Oxley Act requires that:

A. privately traded corporations have board audit committees comprising only of dependent directors.

B. public corporations disclose whether they have adopted a code of ethics for senior financial officers.

C. special committees of the board be assigned to special areas of concern.

D. private corporations report any change in their code of ethics.