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.

---

Definitions:

Activity

Any specific task, action, or series of actions undertaken, often carrying out a particular function or purpose.

Negative Cash Flow

A situation where a company's outflows of cash exceed its inflows over a given period, indicating potential financial trouble.

Cash Turnover Ratio

A financial metric that measures how efficiently a company generates sales from its cash on hand.

Profit

The financial gain realized when the revenue from business operations and sales exceeds the expenses, taxes, and costs of producing and selling goods or services.