Corporate Governance Is All of the Following EXCEPT

question 104

Multiple Choice

Corporate governance is all of the following EXCEPT

• A) Mechanisms used to determine and control the strategic direction and performance of organizations.
• B) A means to establish and maintain harmony between owners and top managers whose interests may conflict.
• C) Ensuring that top managers' interests are aligned with the interests of stockholders.
• D) Resolve conflicts among corporate employees.

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Definitions:

Bankruptcy Claims

Rights to payment held by creditors from a company undergoing bankruptcy proceedings.

Debt/equity Ratio

The proportionality ratio of debt to equity in the context of funding a company's assets.

Optimal Capital Structure

The best mix of debt, equity, and other financial instruments that maximizes a company's value while minimizing its cost of capital.

Increased Benefit

An enhancement or improvement in the terms or amount of an insurance or investment product's payouts.