Which of the Following Refers to the System of Governing

question 72

Multiple Choice

Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected?

• A) Quality circle
• B) Corporate governance
• C) ISO certification
• D) Open-book management
• E) Balance scorecard

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Definitions:

Mutually Exclusive Investments

Mutually exclusive investments are investment options where the choice of one alternative precludes the selection of another, requiring a careful comparison to choose the best option.

Capital Rationing

Occurs when investors or management place a constraint on the size of the firm’s capital budget during a particular period.

Accounting Rate of Return

A financial ratio that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.

Weighted Average Cost of Capital

The average rate of return a company is expected to pay its security holders to finance its assets, weighted by the type of capital.