SEC Code of Corporate Governance Quiz
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Questions and Answers

What is the goal of the SEC Code of Corporate Governance for publicly-listed companies?

To help companies develop and sustain an ethical corporate culture and keep abreast with recent developments in corporate governance.

The Board of Directors is not required to implement the code of business conduct.

False

What is one of the salient provisions of the SEC Code of Corporate Governance?

  • All employees must be given bonuses.
  • Companies must increase their profit margins.
  • Publicly-listed companies must submit a manual on Corporate Governance. (correct)
  • Companies should raise capital only through loans.
  • The real challenge of the SEC Code of Corporate Governance lies in its implementation and _____ compliance.

    <p>monitoring</p> Signup and view all the answers

    What are publicly-listed companies required to establish according to the SEC Code?

    <p>A code of business conduct.</p> Signup and view all the answers

    Study Notes

    SEC Code of Corporate Governance for Publicly-Listed Companies

    • The Securities and Exchange Commission (SEC) approved the Code of Corporate Governance for publicly-listed companies in November 2016.
    • The code aims to promote ethical corporate culture and keep companies updated on corporate governance best practices.
    • A key provision is the requirement for publicly-listed companies to establish a code of business conduct.
    • This code sets standards for ethical and professional behavior and clarifies acceptable and unacceptable conduct and practices.
    • The Board of Directors is responsible for implementing the code and ensuring compliance among management and employees.
    • The SEC's goal in publishing this code is to educate future professionals and businessmen and provide guidance to existing publicly-listed corporations.

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    Description

    Test your knowledge on the SEC Code of Corporate Governance for publicly-listed companies. This quiz covers key provisions, ethical standards, and the responsibilities of the Board of Directors as outlined in the code. Enhance your understanding of corporate governance best practices.

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