Which of the Following Is Not a Type of Governance

question 67

Multiple Choice

Which of the following is not a type of governance mechanism?

• A) Business ethics
• B) The takeover constraint
• C) The board of directors
• D) Stock-based compensation
• E) Financial statements

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often equated to the book value of the company.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Overstatement

An error in financial reporting where the value of assets, revenues, or profits is recorded higher than the actual figures.

Inventory Purchases

Refers to the acquisition of goods and materials a company intends to sell or use in production, forming part of its inventory.