Which government act sought to reform corporate governance practices in large US public companies?

• A. Corporate strategy
• B. Intended strategy
• C. Sarbanes-Oxley Act
• D. SWOT analysis

Answer: (C)

This question tests your knowledge of government actions that reshaped how large US public companies govern themselves. The Sarbanes-Oxley Act, enacted in 2002, was the landmark reform aimed specifically at strengthening corporate governance, financial reporting, and accountability after major corporate scandals. It introduced stricter internal controls requirements, mandated that top executives personally certify financial statements, established more independent audit committees, and increased penalties for fraudulent financial activity, all to improve transparency and investor protection in big public companies.

The other options refer to planning concepts rather than laws. Corporate strategy and intended strategy are terms used for setting goals and plans within a company, while SWOT analysis is a tool for assessing strengths, weaknesses, opportunities, and threats. They’re not government acts aimed at reforming governance.