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17 Cards in this Set
- Front
- Back
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Hobbes' view on social contract
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-man's state of nature is fearful and selfish
-to secure protections, men enter into a contract with the government which will provide service and protection for men -men voluntarily surrender all their rights and freedoms as a trade off |
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Locke's view on social contract
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-men have inalienable rights that can't be taken away
-men have the right to life, liberty, and property -to protect their property they enter into a contract with the government -in contrast to Hobbes, men only give up the right to maintain order and enforce the law -the purpose of the government is to protect men's natural rights, if government fails or becomes corrupt then men can take away government's power |
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Does SOX show evidence of Leviathan?
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-yes and no
-Hobbes wrote Leviathan -Hobbes thought people were selfish and SOX was created to prevent selfish people from being greedy -but people aren't giving up their rights, the government is only regulating accounting procedures |
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How did the federalist papers influence the ratification of the constitution?
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-the federalist papers were a series of 85 essays and articles promoting ratification
-it tried to reassure people that the government wouldn't overpower the states |
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what is meant by "if angels were to govern men..."
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-if men were perfect and good like angels, then there would be no need for government because there wouldn't be a need for laws to protect men from men
-but men are selfish and only care about their own well being so a government is needed to protect people |
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how does the US government balance power?
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-the concept of checks and balances from the federalist papers
-the government's power is divided into 3 branches to prevent one from abusing its power -legislative branch = creates laws -judiciary branch = interprets laws -executive branch = enforces laws |
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how does a bill become a law?
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1) legislation is introduced and is given a title and number
2) sent to a committee for reviews and approval 3) Senate and House vote on it 4) Congress mediates and votes on it 5) Presidents approves or vetoes it |
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how is a law implemented?
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-exec. branch assigns law to federal agency who will be responsible for its implementation
-agency will explain the law to society: its effects, how citizens will comply and be held accountable for the law |
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how is the constitutionality of a law affirmed?
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supreme court, the judiciary branch, reviews the law
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what is the goal of SOX?
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to prevent investors from fraudulent accounting by corporations
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what is the policy foundation of SOX?
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-multifaceted, its has many different aspects to it like:
-requires CEO to certify financial statements -requires internal audit controls to be examined by external auditors -lead auditors need to change every 5 years -whistle blower protection -documentation storage, even electronic one, for 5 years -and it was created by both republicans and democrats |
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what is the policy type of SOX?
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-its a regulatory policy
-it mandates rules/laws that companies have to follow or else face consequences |
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what were the political hurdles of passing SOX?
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-none
-there was a surprising amount of political support for SOX since the enron scandal was recent -it passed unanimously in senate, and only 3 didn't vote for it in house |
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what are major benefits of SOX?
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-it protects investors and stakeholders
-it prevents financial scandals like enron -puts certain people as more responsible if a crime happens |
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what are major costs of SOX?
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-it costs companies about 1% of their revenue to comply to SOX
-it seems small but a revenue of $100 billion means $1 Billion lost which can be used for other things |
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is SOX financially feasible?
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-no, it costs $8 trillion
-and it costs companies 1% of revenues to comply and the costs don't benefit the company in the future -but it prevents future scandals which can cost people a lot of money as a consequence so by preventing that scandals, its essentially saving people money |
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is SOX liberal or conservative?
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-conservative
-because SOX looks to the market for the solution -the companies are the ones who have to make changes to their accounting practices to comply with SOX |
