Which of the Following Is the Best Definition of Corporate

question 245

Multiple Choice

Which of the following is the best definition of corporate governance?

• A) The sale of stock in a wholly owned subsidiary via an IPO.
• B) A targeted share repurchase method. repurchase method. oice2
• C) The sale of assets, operations, divisions, and/or segments of a business to a third party.
• D) Investment in more than one asset; returns do not move proportionally in the same direction at the same time, thus reducing risk.
• E) Rules and practices relating to how corporations are governed by management, directors, and shareholders.

---

Definitions:

Transactive Strategy-making

A process in which strategy formulation is seen as a dynamic exchange between various stakeholders within and outside the organization.

Risk-taking Entrepreneurs

Individuals who start businesses or ventures by embracing uncertainty and potentially high risks in pursuit of innovation and profits.

Middle-level Managers

Individuals who manage the work of first-line managers and report to top-level management, playing a crucial role in implementing organizational policies and strategies.

Strategy Making

The process of developing and implementing plans or strategies to achieve organizational goals and objectives.