The Governance Mechanism Most Closely Connected with Deterring Unethical Behaviors

question 54

Multiple Choice

The governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture is

• A)ownership concentration.
• B)the market for corporate control.
• C)executive compensation systems.
• D)the board of directors.

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Definitions:

Income Tax Schedule

A chart or table provided by tax authorities that indicates the tax rates applicable to different levels of income.

State Lotteries

Government-run gambling games in which participants can win prizes based on randomly drawn numbers or symbols, often to fund public sector projects.

Payout Rates

The percentage of earnings paid to shareholders in the form of dividends.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, illustrating how much tax applies to an additional dollar of income.