The best deﬁnition of corporate governance is:
A) The possibility of conﬂicts between shareholders and management in a large corporation.
B) The process of planning and managing a ﬁrm's long-term investments.
C) The actions that are deemed as socially responsible.
D) The manner in which shareholders agree on corporate capital structure.
E) The mechanisms and processes by which corporations are directed and controlled.

Question

Quizplus · Accepted Answer

The definition of corporate governance is the mechanisms and processes by which corporations are directed and controlled. While the other choices all relate to aspects of corporate management, they do not encompass the full scope of corporate governance.

The Best Deﬁnition of Corporate Governance Is