Which of the Following Is True of the "Comply or Explain

question 13

Multiple Choice

Which of the following is true of the "comply or explain" approach to corporate governance?

• A) It set stiff financial penalties for companies that refused to abide by its operational standards.
• B) It gave companies the flexibility to comply with its governance standards or justify why they didn't in their corporate documents.
• C) It was extremely explicit when it came to defining what would be acceptable explanations for noncompliance.
• D) It proved to be an effective deterrent to financial scandals and reduced the incidence of unethical behavior in corporations.

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Definitions:

Homeostasis

The tendency of a biological system to maintain stability while adjusting to conditions that are optimal for survival.

Multitasking

The ability to perform multiple tasks simultaneously or switch between tasks quickly.

Simultaneously

Occurring, operating, or done at the same time.

Mainstream Media

Outlets of mass communication that reach a large audience, including television, newspapers, and radio, which often set the agenda for public discourse.