Corporate Governance Is Best Defined As

question 23

Multiple Choice

Corporate governance is best defined as:

• A)the system of laws and regulations that control corporations.
• B)the system of controls,regulations,and incentives designed to prevent fraud and minimize conflicts of interest in a corporation.
• C)the system that determines who controls and runs a corporation.
• D)the system that minimizes agency costs between bondholders and stockholders.

---

Definitions:

Average Fixed Cost

Production's unchanging charges, unaffected by output levels, divided by the total output quantity.

Average Variable Cost

The cost a company incurs to produce one additional unit of a product, calculated by dividing the total variable costs by the number of units produced.

Average Variable Cost

The cost per unit of variable inputs (like labor or materials) for producing a good, which changes with the level of output.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, or insurance.