Which of the following best describes the role of corporate governance?
A)Management decides which accounting principles are the most appropriate.
B)Shareholders vote to decide who should be members of the board of directors.
C)Holding the management team accountable to shareholders and other constituents for the utilization of the entity's resources.
D)Management often is compensated based on the company's profitability.

Question

Quizplus · Accepted Answer

Corporate governance is about holding the management team accountable to the shareholders and other stakeholders for the use of the company's resources. This includes monitoring the performance of the management team, ensuring adherence to relevant laws and regulations, and ensuring that the interests of shareholders are protected. While the other options mentioned are relevant to the functioning of a corporation, they do not best describe the role of corporate governance.

Which of the Following Best Describes the Role of Corporate