CIRA Legal & Regulatory Environment

Question 1

What governs insolvency proceedings in the U.S.?

Accepted Answer

U.S. Bankruptcy Code

Answer

Securities Exchange Act

Answer

Sarbanes-Oxley Act

Answer

Dodd-Frank Act

Question 2

Which regulatory body oversees financial reporting?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

Federal Reserve

Answer

FBI

Answer

FTC

Question 3

What is the purpose of the Sarbanes-Oxley Act?

Accepted Answer

Improve disclosures and prevent fraud

Answer

Increase taxes

Answer

Reduce regulations

Answer

Promote advertising

Question 4

What does compliance with regulations ensure?

Accepted Answer

Follow laws and avoid penalties

Answer

Ignore laws

Answer

Increase violations

Answer

Delay reporting

Question 5

Which act focuses on protecting consumer financial privacy?

Accepted Answer

Gramm-Leach-Bliley Act

Answer

Freedom of Information Act

Answer

Patriot Act

Answer

Health Insurance Portability Act

Question 6

What is the role of a regulatory body?

Accepted Answer

Enforce laws and compliance

Answer

Ignore violations

Answer

Promote illegal activities

Answer

Reduce oversight

Question 7

Why must insolvency advisors understand legal requirements?

Accepted Answer

Comply with laws and protect stakeholders

Answer

Ignore legal rules

Answer

Violate contracts

Answer

Avoid regulations

Question 8

What is a key aspect of regulatory compliance?

Accepted Answer

Adhering to laws and standards

Answer

Ignoring laws

Answer

Bypassing regulations

Answer

Reducing oversight

Question 9

Which law regulates insider trading?

Accepted Answer

Securities Exchange Act of 1934

Answer

Patriot Act

Answer

Sarbanes-Oxley Act

Answer

Gramm-Leach-Bliley Act