Corporate governance is:
A)The way a firm is organized
B)The way a firm makes decisions
C)The system by which the top management of a firm is directed and controlled
D)The way a firm appoints and replaces its CEO

Question

Quizplus · Accepted Answer

Corporate governance refers to the system by which the top management of a firm is directed and controlled. This includes the establishment of clear roles and responsibilities, decision-making processes, and accountability mechanisms for the board of directors and senior executives. While aspects of organizational structure and CEO appointment may be relevant to corporate governance, they are not the defining characteristics of this concept.

Corporate Governance Is