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:

TC

Typically refers to "Total Cost," which is the complete cost of production including both fixed and variable costs.

Average Fixed Costs

The fixed costs of production (such as rent and salaries) divided by the quantity of output produced.

Average Total Costs

The overall expense of creating goods divided by the number of items produced.

Output

The quantity of goods or services produced by a firm, industry, or economy within a specified period.