Regulation of The Capital Market: Statutory Regulation - SS2 Accounting Past Questions and Answers - page 1
What is statutory regulation?
A system of laws and regulations that are created by a government or regulatory body
A set of voluntary guidelines that organizations can choose to follow
A system of rules that are enforced by social pressure
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What is the purpose of statutory regulation?
To ensure that individuals and organizations act in a responsible and ethical manner
To promote competition and free markets
To reduce the burden of government bureaucracy
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Who enforces statutory regulations?
A government agency or regulatory body
The police
The courts
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What can happen to individuals or organizations that fail to comply with statutory regulations?
They may be subject to penalties or fines
They will receive a warning
Nothing will happen
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What is one potential drawback of statutory regulation?
It can be complex and expensive to implement and enforce
It is always biased and unfair
It is not effective in protecting the public
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What is the difference between statutory regulation and voluntary guidelines?
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What are some potential benefits of statutory regulation?
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