The Purpose of Governance Mechanisms in Corporations Is to

question 29

Multiple Choice

The purpose of governance mechanisms in corporations is to

• A) keep employees in line.
• B) reduce the scope and frequency of the agency problem.
• C) satisfy the requirements of the Securities and Exchange Commission (SEC).
• D) limit corporate growth to manageable rates.
• E) none of these choices.

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Definitions:

Thanatos

In Freudian psychology, a concept representing the death drive or instinct, which coexists with the life instinct (Eros) and drives aggressive and destructive behavior.

Psychic Epidemics

Phenomena in which large numbers of people begin to engage in unusual behaviors that appear to have a psychological origin.

Self-Hypnotic Suggestion

A technique of self-induction to reach a state of heightened suggestibility for personal improvement or therapeutic purposes.

Substance-Induced Psychosis

A form of psychosis triggered by the abuse of drugs or alcohol, which can lead to hallucinations, delusions, and disordered thinking.