The appointment of an audit committee is an example of internal corporate governance, whereas the ability of one company to take over another is an example of external corporate governance.

Question

Quizplus · Accepted Answer

Internal corporate governance refers to the mechanisms, processes, and relations by which corporations are controlled and directed from within, such as the appointment of an audit committee. External corporate governance involves external pressures and forces on the corporation, such as market competition, regulations, and the potential for takeovers by other companies.

The Appointment of an Audit Committee Is an Example of Internal