Comparing the U.S. with the German and Japanese corporate governance systems,

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Quizplus · Accepted Answer

The statement is true for all the options. The U.S. system is market-centered, where ownership is more dispersed, decisions are made by a board of directors elected by shareholders, and market forces play a significant role in shaping corporate governance practices. On the other hand, the German and Japanese systems are bank-centered, as banks take a long-term view of their relationship with firms, often hold blocks of shares in them, and play a vital role in corporate governance. However, neither of these systems is perfect, and all have their strengths and weaknesses.