What could be the result of poor corporate governance in an organisation?
A)poor returns on investment for minority shareholders
B)bad publicity from environmental groups
C)company failure and potential damage to economy
D)managers who are influenced by self-interest rather than the longevity of the company

Question

Quizplus · Accepted Answer

Poor corporate governance can lead to mismanagement of resources and financial misconduct, ultimately resulting in company failure. This can have a ripple effect on the economy, as seen in the case of Enron and Lehman Brothers.

Answer: A and D 
 Poor corporate governance can result in managers prioritizing their own self-interests over the well-being of the company, leading to poor decision-making and ultimately lower returns on investment for minority shareholders. This can also result in unethical practices and behavior that can harm the reputation of the company.

What Could Be the Result of Poor Corporate Governance in an Organisation