Two Areas in Which Corporate Governance Is Being Reformed Are

question 29

Multiple Choice

Two areas in which corporate governance is being reformed are the role of boards of directors and ________.

• A)employee stock options
• B)financial reporting
• C)executive compensation
• D)appointment of CEOs

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Definitions:

Moral Hazard Problem

A situation where one party engages in risky behavior knowing that it is protected against the consequences by another party.

Government's Role

Refers to the duties and functions that a government carries out to ensure the stability and growth of its nation, including legislation, public service provision, and economic management.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, as opposed to the state.

Information Difficulties

Challenges encountered in obtaining, processing, or understanding necessary information, often affecting decision-making processes.