Why Was the "Comply or Explain" Approach to Corporate Governance

question 17

Multiple Choice

Why was the "comply or explain" approach to corporate governance problematic?

• A) It was too strict and fined corporations that did not conform to its standards heavily.
• B) It did not permit corporations to express why they chose not to comply with certain rules.
• 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:

Queen

A female monarch or the wife of a king, who rules a kingdom or has a high position of authority.

Probability

A measure of the likelihood that an event will occur.

Likely Viewer

An individual or demographic group considered probable to watch a particular show or type of content.

Unlikely Viewer

A demographic or individual who is considered not part of the typical audience for a specific content or media.