Which of the Following Is NOT an Internal Governance Mechanism

question 65

Multiple Choice

Which of the following is NOT an internal governance mechanism?

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

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Definitions:

Unamortized Premium

The portion of the bond premium that has not yet been amortized or gradually written off against earnings over the life of the bond.

Open Market

A market structure where economic transactions are conducted freely and transparently, allowing for unrestricted competition.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its original purchase price.

Bonds

Fixed income investment products representing loans made by an investor to a borrower, typically corporate or governmental, which pay periodic interest payments.