Corporate Governance Structures and Relationships Are Shaped by Internal and External

question 76

Multiple Choice

Corporate governance structures and relationships are shaped by internal and external mechanisms. Which of the following is an external mechanism?

• A) State and federal statues require a baseline corporate governance system
• B) Audit committees must consist of at least three members all of whom are independent of management and the entity
• C) All directors must be independent of management
• D) Each listed company must have an internal audit function

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Definitions:

Structural Barrier

Physical or societal obstacles that prevent individuals or groups from accessing certain opportunities or resources, often based on discrimination or entrenched norms.

Performance Measurements

Quantitative or qualitative assessment of how well an individual, group, or system is achieving its goals or objectives.

Supportive Reward Systems

Supportive reward systems are organizational mechanisms designed to recognize and incentivize employee performance and behavior, aligning individual achievements with broader business goals and values.

Cognitive Task Analysis

A method used to breakdown and examine the cognitive processes involved in completing specific tasks, particularly those requiring expert knowledge or complex decision-making.