Practice Test Geeks(ABC) Accredited Business Communicator Practice Test
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Regulatory Compliance & Standards Flashcards

7 cards from real ABC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance & Standards flashcards as text

  1. Under the Sarbanes-Oxley Act, which communication responsibility falls on public company executives regarding financial disclosures?

    Answer: Personally certify the accuracy of financial reports

    SOX Section 302 requires CEOs and CFOs to personally certify the accuracy and completeness of financial disclosures filed with the SEC.

  2. A communicator drafting a press release for a publicly traded company discovers material non-public information. The correct action is to:

    Answer: Consult legal counsel and delay release until proper disclosure procedures are followed

    Material non-public information must be handled through proper Regulation FD and SEC disclosure procedures before public release.

  3. Which federal law most directly governs how organizations communicate about consumer privacy practices?

    Answer: The Federal Trade Commission Act

    The FTC Act prohibits unfair or deceptive acts, giving the FTC authority to enforce truthful privacy policy communications.

  4. When communicating about a product recall, which regulatory body's guidelines should a PR professional follow for consumer product safety issues?

    Answer: CPSC

    The Consumer Product Safety Commission (CPSC) sets recall communication requirements including timing, content, and distribution channels.

  5. The concept of 'reasonable accommodation' in workplace communications is most closely tied to which law?

    Answer: The Americans with Disabilities Act

    The ADA requires employers to communicate and provide reasonable accommodations for employees with disabilities.

  6. A company spokesperson is asked about a competitor's product during a press conference. Which legal doctrine is most relevant to how they should respond?

    Answer: Comparative advertising under the Lanham Act

    The Lanham Act governs comparative advertising, requiring that any comparisons be truthful and non-deceptive to avoid liability.

  7. In regulated industries, a 'quiet period' typically refers to:

    Answer: A restricted communication window before an IPO or earnings release

    A quiet period restricts company communications before an IPO or earnings announcement to prevent influencing investor decisions.