The relationship between the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of law is known as
A) Code of ethics
B) Corporate sustainability
C) Corporate responsibility
D) Corporate governance

Question

Quizplus · Accepted Answer

The question defines the relationship between shareholders, directors, and management of a company in terms of the corporate charter, bylaws, formal policy, and rule of law. This definition falls within the scope of corporate governance, which refers to the system of rules, practices, and processes by which a company is directed and controlled. Therefore, choice D, corporate governance, is the most appropriate answer. Choices A, B, and C are also important concepts in modern business, but they do not specifically refer to the relationship between shareholders, directors, and management within the framework of corporate rules and regulations.

The Relationship Between the Shareholders, Directors, and Management of a Company