Which of the following statements about corporate governance is true?

Question

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Good corporate governance is essential for a country's economic competitiveness. Countries with strong corporate governance tend to have more stable economies, attract more investment, and enjoy higher levels of economic growth. The other statements are either inaccurate or incomplete. Good corporate governance is essential for promoting trust and confidence in the economy, attracting investment, and ensuring long-term sustainability. Nations with high standards of corporate governance tend to have better economic growth, higher levels of innovation, and greater social stability. Therefore, a nation's economic competitiveness is indeed dependent on good corporate governance. Choices A, B, and D are incorrect because government regulation is necessary for ensuring that firms have strong corporate control mechanisms in place, the corporate charter is not the most effective control mechanism, and the free market cannot always provide sufficient safeguards against abuses.

Which of the Following Statements About Corporate Governance Is True