Corporate governance refers to a system of controls both internal and external to the firm that protects
stakeholders' interests.

Question

Quizplus · Accepted Answer

Corporate governance is designed to ensure that the interests of all stakeholders, including shareholders, employees, customers, suppliers, and the wider community, are protected. This can involve a range of internal controls, such as board oversight, executive remuneration policies, and risk management processes, as well as external mechanisms like regulatory oversight and investor activism. The ultimate aim of corporate governance is to promote transparency, accountability, and long-term value creation for all stakeholders.

Corporate Governance Refers to a System of Controls Both Internal