Which of the following best describes the role of corporate governance?

Question

Quizplus · Accepted Answer

Corporate governance is the framework of rules, practices, and processes by which a company is directed and controlled. The primary role of corporate governance is to ensure that management is held accountable to shareholders and other stakeholders by an independent board of directors. While management may make decisions regarding accounting principles and may be compensated based on company profitability, these are not the primary roles of corporate governance. Shareholders do have a role in corporate governance, but it is primarily through the election of the board of directors, rather than direct decision-making.

Which of the Following Best Describes the Role of Corporate