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:

Controversial

Something that gives rise to public disagreement or debate.

Psychographics

Psychological characteristics of an audience, including personality, attitudes, and lifestyle.

Demographics

Quantifiable characteristics of a population, including age, gender, occupation, income, and education.

Affiliation

A connection or association with a group, organization, or institution, often indicating a formal relationship.