Define the Three Internal Corporate Governance Mechanisms and How They

question 114

Essay

Define the three internal corporate governance mechanisms and how they may be used to control and monitor managerial decisions.

---

Definitions:

Operating Costs

Operating costs are expenses associated with the day-to-day functions of a business, including costs for goods, services, rent, and salaries.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Construction

The process or activity of building structures such as houses, roads, and buildings.

User Cost

The cost of using a capital asset, considering both the depreciation of the asset and the interest lost by investing in the asset instead of elsewhere.