Corporate governance
A) is a department within Canada Revenue with a mandate to ensure all corporations file annual tax returns.
B) if effective,should enhance stakeholders' confidence that the organization is being managed in their best interests.
C) ensures the personal interests of top management are fully achieved.
D) is only important to non-publicly traded companies.

Question

Quizplus · Accepted Answer

Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. If effective, it should enhance stakeholders' confidence that the organization is being managed in their best interests. It is important for both publicly traded and non-publicly traded companies. Choice A is incorrect because corporate governance is not a department within Canada Revenue. Choice C is incorrect as corporate governance should ensure the personal interests of top management are aligned with the interests of stakeholders. Choice D is incorrect as corporate governance is relevant to all organizations, regardless of whether they are publicly traded or not.

Corporate Governance