Which of the following is true of the "comply or explain" approach to corporate governance?
A) It set stiff financial penalties for companies that refused to abide by the operational standards.
B) It gave companies the flexibility to comply with the governance standards or justify why they didn't in their corporate documents.
C) It was extremely explicit when it came to defining what would be acceptable explanations for noncompliance.
D) It proved to be an effective deterrent to financial scandals and reduced the incidence of unethical behavior in corporations.
Correct Answer:
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