The market model of corporate governance is readily applicable to privately held, family owned firms.

Question

Quizplus · Accepted Answer

The market model of corporate governance is primarily designed for publicly traded companies where governance is exercised through the market mechanisms, such as mergers and acquisitions, and the discipline of the market. Privately held, family-owned firms often rely on different governance structures that are more centered around family control and less influenced by market mechanisms.

The Market Model of Corporate Governance Is Readily Applicable to Privately