When Discussing the Structure of Corporate Governance, the Authors Distinguish

question 42

Multiple Choice

When discussing the structure of corporate governance, the authors distinguish between internal and external factors. ________ is an example of an internal factor, and ________ is an example of an external factor.

• A) Equity markets; executive management
• B) Debt markets; board of directors
• C) Executive management; auditors
• D) Auditors; regulators

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Definitions:

Money Markets

Financial markets for short-term borrowing and lending, dealing with assets that mature in less than one year.

Capital Markets

Financial markets where debt or equity securities are traded, providing a mechanism for companies to raise long-term funds and investors to purchase securities.

Money Market Securities

Short-term financial instruments typically with high liquidity and minimal risk.

Capital Market Securities

Long-term financial instruments traded in capital markets, such as bonds, stocks, or debentures.