Corporate governance requires a system of ____ similar to the distribution of power between the executive, legislative, and judiciary branches of the U.S. government.

Question

Quizplus · Accepted Answer

The concept of checks and balances is crucial in corporate governance, as it ensures that no one person or group has too much power or control. Just as in the U.S. government, where the executive, legislative, and judiciary branches are set up with their own unique powers and responsibilities, a well-designed corporate governance system should have a similar structure where decision-making authorities are distributed and balanced among different groups. This helps prevent any one individual or group from making reckless or self-serving decisions that could harm the company and its stakeholders. Therefore, the correct answer is C - checks and balances.

Corporate Governance Requires a System of ____ Similar to the Distribution