Which of these is the system of incentives and monitors that tries to overcome the agency problem?
A)Security Exchange Commission
B)checks and Balances
C)board of Directors
D)corporate Governance

Question

Quizplus · Accepted Answer

Corporate governance is the system of incentives and monitors that tries to overcome the agency problem. It involves a set of processes, principles, and guidelines designed to ensure that a company is run in the best interests of all stakeholders, including shareholders, employees, customers, and the wider community. The board of directors is a key part of corporate governance, but it is not the only element. Other components may include external auditors, regulatory bodies such as the SEC, and internal policies and procedures. Checks and balances are a broader principle of constitutional design that is not directly related to corporate governance.

Which of These Is the System of Incentives and Monitors