Which of the following is NOT an internal governance mechanism?
A) The board of directors
B) Ownership concentration
C) Executive compensation
D) The market for corporate control

Question

Quizplus · Accepted Answer

The market for corporate control is an external governance mechanism, as it involves the acquisition of a company by another company or individual from outside the organization. The other three options (board of directors, ownership concentration, and executive compensation) are all internal governance mechanisms that operate within a company.

Which of the Following Is NOT an Internal Governance Mechanism