Final answer:
The Sarbanes-Oxley Act improved corporate governance by requiring executives to certify the accuracy of financial statements, which enhances investor confidence and protects against accounting fraud.
Step-by-step explanation:
The Sarbanes-Oxley Act improved corporate governance of Multinational Corporations (MNCs) primarily by making executives more accountable for the accuracy of financial statements. Among other things, the Act requires that top management certify the accuracy of the financial information which in turn increases confidence in financial information provided by public corporations and aims to protect investors from accounting fraud. It did not, however, eliminate stock options as a form of compensation, directly tie executive compensation to firm performance, nor place a limit on the amount of funds that managers can spend. Hence, the correct answer to the student's question is that it made executives more accountable for verifying financial statements.