Which of the Following Best Describes What Is Meant by Corporate

question 33

Multiple Choice

Which of the following best describes what is meant by corporate governance?

• A)The organizational structure and responsibilities of the executive team and board of directors of a corporation.
• B)Regulatory bodies,such as the SEC and PCAOB,that govern the behavior of corporations.
• C)The ability of a corporation's management team to meet earnings forecasts over an extended period of time.
• D)Management's processes,policies,and ethical approach to safeguarding stakeholder interests.

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Definitions:

Contractionary Monetary Policy

A central banking strategy involving the increase of interest rates or reduction of the money supply to decrease inflation and slow down economic growth.

Short-Run Phillips Curve

A curve illustrating an inverse relationship between the rate of inflation and the rate of unemployment in the short term.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services rise.

Financial Crisis

A situation where financial assets suddenly lose a large part of their nominal value, often leading to bankruptcies, bank failures, and economic downturns.