Corporate governance has been suggested to be at the heart of corporate failure. It has been suggested that companies are less likely to get in financial trouble if their boards:

Question

Quizplus · Accepted Answer

Boards that are active in their roles and provide oversight to management are more likely to prevent corporate failure. This includes regularly reviewing financial statements, monitoring risk, and making strategic decisions for the company. Letting management run the company with minimal oversight or managing the company themselves can lead to unchecked risk-taking and financial mismanagement. Having good political connections may provide benefits in certain situations but is not a key factor in preventing corporate failure.

Corporate Governance Has Been Suggested to Be at the Heart