STR 581 help A Guide to career/uophelp.com STR 581 help A Guide to career/uophelp.com | Page 2

A. Section 32(a) of the Securities Exchange Act of 1934

B. Section 24 of the Securities Act of 1933

C. Section 11(a) of the Securities Act of 1933
D. Section 10(b) of the Securities Exchange Act of 1934
3 Jonah’s Restaurant reports net income of $20,000 during the year 2015.
It distributes a dividend of $6,000 to its shareholders. Calculate the
retention ratio.
A. 50%

B. 30%

C. 80%
D. 70%
4 Wilande Inc., a leading apparel store, acquires Parewa Inc., an energy
drink manufacturer. This is an example of a __________.
A. congeneric merger

B. horizontal merger

C. conglomerate acquisition
D. vertical acquisition
5 Gina and Samantha are discussing the Sarbanes-Oxley Act of 2002.
Gina argues that although the act requires the management of a company
to explicitly declare in writing that a company’s financial statements
accurately and fairly represent the financial results, no steps have been
taken to ensure that this rule is followed. Which of the following
statements weakens Gina’s argument?
A. An individual who is employed by a certified public accounting firm
that audits a company can be employed as the CEO or CFO of that
company to ensure the fairness of its financial statements.

B. If a company’s financial statements contain misrepresentations, the
CEO and CFO run the risk of serving time in jail.

C. The Sarbanes-Oxley Act prohibits a public company from granting
personal loans to any of its executive officers or directors