Which of the following is the objective(s)of a corporate governance system? (i)To ensure that minority shareholders receive reliable information about the value of firms and that a company's managers and large shareholders do not cheat them out of the value of their investments.(ii)To motivate managers to maximise firm value instead of pursuing personal objectives.(iii)To encourage companies to create value,through entrepreneurialism,innovation,development and exploration,and provide accountability and control systems commensurate with the risks involved.
A)(ii)only
B)(iii)only
C)(i)(iii)only
D)(i)(ii)(iii)

Question

Quizplus · Accepted Answer

The objective(s) of a corporate governance system are (i) to ensure that minority shareholders receive reliable information about the value of firms and that a company's managers and large shareholders do not cheat them out of the value of their investments, (ii) to motivate managers to maximize firm value instead of pursuing personal objectives, and (iii) to encourage companies to create value through entrepreneurialism, innovation, development, and exploration and provide accountability and control systems commensurate with the risks involved. Therefore, option D (i)(ii)(iii) is the best choice.

Which of the Following Is the Objective(s)of a Corporate Governance