Corporate governance ________.
A) refers to executive governance practices in companies
B) is a system used to govern a corporation so that the interests of corporate owners are protected
C) is a term that refers to legal agreements made between two or more partner firms
D) refers to the negative influence of the corporation in society

Question

Quizplus · Accepted Answer

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. Its aim is to balance the interests of the company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community, and to ensure that the company is managed in the best interests of all stakeholders. Therefore, choice B is the most appropriate answer as it correctly defines corporate governance.

Corporate Governance ________