Which one of the following statements is TRUE?

Question

Quizplus · Accepted Answer

Accounting control systems, such as budgeting and performance measurement, can be used as a tool for corporate governance. Option B is incorrect because asset switching typically involves switching one type of asset for another, not simply exchanging one piece of real estate for another. Option C is incorrect because the location of the company headquarters is not typically seen as a tool for corporate governance. Option D is incorrect because an agency relationship typically involves a principal-agent relationship, not a supervisor-employee relationship. Option E is incorrect because tax avoidance strategies are not typically seen as a tool for corporate governance, but rather as a legal and financial strategy for minimizing a company's tax liability.

Which One of the Following Statements Is TRUE