BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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common stock shareholders
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board of directors
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top executive officers
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Detailed explanation-1: -The answer will be 3) board of directors.
Detailed explanation-2: -A company’s is (are) potentially the most effective instrument of good corporate governance. 11. The Sarbanes-Oxley Act of 2002 (SOX) was largely a response to: a series of corporate scandals involving Enron, WorldCom, Global Crossing, Tyco and numerous others.
Detailed explanation-3: -The role of the board is to plan and strategize goals and objectives for the short-and long-term good of the company and to put mechanisms in place to monitor progress against the objectives. To this regard, board directors must review, understand and discuss the company’s goals.
Detailed explanation-4: -What makes good corporate governance effective? Good corporate governance practices are effective because they are based on organisation, transparency, accountability and strategic planning. These elements breed confidence and trust in investors and other stakeholders, provide risk oversight and help prevent scandals.