Question

the sarbanes-oxley act of 2002 was intended to meet which major objective?
a. prevent corporate officers from investing in their own businesses
b. prevent owners of an organization from committing stock fraud
c. protect the assets of an organization for business use
d. limit ownership of a corporation to u.s. citizens

Explanation:

The Sarbanes - Oxley Act (SOX) of 2002 was enacted to improve corporate governance, financial reporting, and internal controls to protect investors and the integrity of financial markets. Let's analyze each option:

• Option A: SOX does not prevent corporate officers from investing in their own businesses. Officers can invest in their own businesses within legal and ethical boundaries, and this is not a main objective of SOX.
• Option B: While SOX aims to prevent fraud, the more accurate focus is on financial reporting fraud and protecting investors. The description of "preventing owners from committing stock fraud" is not the most accurate summary of SOX's main objective.
• Option C: SOX requires companies to have proper internal controls to protect the organization's assets for legitimate business use. It aims to ensure that assets are not misappropriated or misused due to weak internal controls, which is a key objective of the act.
• Option D: SOX has nothing to do with limiting corporation ownership to U.S. citizens. This is not related to the act's goals.

Answer:

C. protect the assets of an organization for business use