Which of the Following Describes the 'Forming Function' of Corporate

question 2

Short Answer

Which of the following describes the 'forming function' of corporate governance?
A.To ensure corporate conformance to the stated mission and strategy
B.To shape, articulate and communicate the fundamental principles that will drive the organization's activities
C.To judge the strategy initiatives brought forward by top management and/or, actively, to participate in strategy development
D.To monitor whether the organization is undertaking the activities as promised, and whether the performance is satisfactory.

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Definitions:

Fixed Costs

Expenses that do not change based on the level of production or sales.

Required Return

The minimum expected yield by investors for providing capital to a company, considering the investment’s risk level; another perspective on the return investors seek for risk-taking.

Caster

The forward or rearward tilt of the kingpin centerline to vertical when viewed from the side. Zero caster indicates that the kingpin is located at true vertical. Positive caster occurs when the kingpin tilts rearward (leans behind) and negative caster occurs when the kingpin tilts forward.

Heavy-duty Trucks

Large and robust trucks designed to haul significant weight, often used for commercial, construction, or industrial purposes.