All of the Following Are Principles of Good Organizational Governance,as

question 33

Multiple Choice

All of the following are principles of good organizational governance,as established by Business Week,except:

• A) no directors do business with the company or accept consulting or legal fees from the firm.
• B) the audit, compensation and nominating committees are made up solely of outside directors.
• C) each director owns a large equity stake in the company, excluding stock options.
• D) at least two directors are current or former company executives.
• E) the CEO is not also the Chairperson of the Board.

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Definitions:

Financial Reports

Financial reports are formal records of the financial activities and position of a business, person, or other entity.

Public Accountants

Professionals who provide accounting services to the general public, including auditing, tax preparation, and consulting services.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.