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Why Was There Little Reason to Focus on Corporate Governance

Question 10

Multiple Choice

Why was there little reason to focus on corporate governance in the late 1800s and early 1900s?


A) In most companies, the owner made the strategic decisions about the business, so little governance was needed.
B) The stakeholders in organizations had the same views about decision making, so there was little need for governance mechanisms.
C) There were no social, safety, or environmental problems at this time, so governance mechanisms were unnecessary.
D) The government tightly controlled industries during this time period, thereby making a company's attempt at governance futile.
E) Companies followed all laws, so there was little need for governance mechanisms.

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