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The "Comply or Explain" Approach to Corporate Governance Was Problematic

Question 60

Multiple Choice

The "comply or explain" approach to corporate governance was problematic because _____.


A) it did not take into consideration the remuneration packages provided to the employees of a company
B) its stringent measures to deny flexibility to comply with governance standards caused organization-wide friction
C) its definition of what constitutes an acceptable explanation for not complying was vague
D) it expected corporations to abide by an extremely rigid set of operating standards

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