Which of the Following Is NOT a True Statement About

question 69

Multiple Choice

Which of the following is NOT a true statement about corporate governance?

• A) Governance is used to establish order between parties whose interests may be in conflict.
• B) Corporate governance mechanisms have occasionally failed to monitor and control top managers' decisions.
• C) A well functioning corporate governance and control system will seldom provide a competitive advantage.
• D) Corporate governance should ensure that the interests of top-level managers are aligned with shareholders' interests.

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Indirect Costs

Costs that are not directly traceable to a product, process, or activity but are necessary for the business’s overall operations, such as utilities or administrative salaries.

Stock Issue Costs

Expenses associated with issuing new shares of stock, including underwriting, legal, and registration fees.

Contingent Consideration

An obligation of a buyer to transfer additional assets or equity interests to the seller if future events occur or conditions are met after a business combination.