The "Comply or Explain" Approach to Corporate Governance Was Problematic

question 30

Multiple Choice

The "comply or explain" approach to corporate governance was problematic because _____.

• A)it did not take into consideration the remuneration packages provided to the employees of a company
• B)its stringent measures to deny flexibility to comply with governance standards caused organization-wide friction
• C)its definition of what constitutes an acceptable explanation for not complying was vague
• D)it expected corporations to abide by an extremely rigid set of operating standards

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Definitions:

Supply Chain Profits

The total earnings generated across all stages of the product's journey from raw material to the end customer.

Wasted Capacity

The portion of production or storage capacity that goes unused or underutilized, often resulting in increased costs and inefficiencies.

Pricing

The process of determining the cost at which a product or service will be sold to consumers.

Influence Demand

The ability to affect consumer desire or need for products and services through marketing efforts, quality improvements, or price adjustments.