The market governance model is applicable when which of the following conditions are true?

Question

Quizplus · Accepted Answer

All of the above conditions are true in a market governance model. In such a model, ownership and control are separate, which means that decisions are made by the market and not by a single controlling entity. Equity ownership is widely dispersed, which ensures a diversity of interests and prevents any one entity from dominating decision-making. Capital markets are liquid, allowing for easy buying and selling of shares. Board members are largely independent, ensuring that decisions are made in the best interest of the company and its shareholders.

The Market Governance Model Is Applicable When Which of the Following