Which of the Following Principles Should a Company Follow for Effective

question 43

Multiple Choice

Which of the following principles should a company follow for effective corporate governance?

• A) Appointments to the board of directors should always be made on basis of quid pro quo agreements.
• B) The board of directors and the CEO should work together when evaluating risk-versus-reward scenarios.
• C) The board of directors should consist solely of members who have direct connections to the company.
• D) The roles of the chairperson of the board and that of the chief executive officer should be merged.

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Definitions:

Confinement

The act of restricting someone or something within a space or area; imprisonment.

Plaintiff

A plaintiff is the party who initiates a lawsuit against another party (the defendant) in a court of law, seeking legal remedy for a dispute or injury.

Tort

A civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act.

Government

The system or group of people governing an organized community, often a state, including institutions and officials with authority to make and enforce laws.