Which of the following best describes what is meant by corporate governance?
A)The organizational structure and responsibilities of the executive team and board of directors of a corporation.
B)Regulatory bodies,such as the SEC and PCAOB,that govern the behavior of corporations.
C)The ability of a corporation's management team to meet earnings forecasts over an extended period of time.
D)Management's processes,policies,and ethical approach to safeguarding stakeholder interests.

Question

Quizplus · Accepted Answer

Corporate governance refers to the processes, policies, and ethical approach of a corporation's management team to safeguard the interests of all stakeholders, including shareholders, employees, customers, suppliers, and the community. It encompasses the way a company is managed and the systems in place to ensure accountability, transparency, and integrity in decision-making. While A may be a component of corporate governance, it is not a comprehensive definition. B is incorrect as regulatory bodies are not considered corporate governance in and of themselves. C is incorrect as meeting earnings forecasts is not the only or even the primary goal of corporate governance.

Which of the Following Best Describes What Is Meant by Corporate