Because of conflicts of interest between shareholders and management, it is in the interest of shareholders to monitor management's performance through:
A) regular management letters to shareholders.
B) visits to the corporate facility.
C) attendance at the annual shareholder meetings.
D) periodic financial reports reviewed by independent auditors.

Question

Quizplus · Accepted Answer

Periodic financial reports reviewed by independent auditors provide a level of transparency and accountability for management's performance. Shareholders can evaluate the accuracy and reliability of the financial statements and assess the effectiveness of management's decision-making. The other options may also offer some level of insight into management's performance, but they are not as reliable or effective as independent financial reporting.

Because of Conflicts of Interest Between Shareholders and Management, It