Which of the Following Checks, When in Place, Reduces the Risk

question 25

Multiple Choice

Which of the following checks, when in place, reduces the risk of fraud or unethical behavior in a corporation?

• A)The participants of the governance process must be made accountable effectively.
• B)The roles of the chief executive officer and the chairperson of the board must be merged.
• C)The authority of the chief executive officer should be absolute and unchallenged.
• D)The company should follow the "comply or explain" approach to governance.

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Definitions:

Short-run

A timeframe in economics during which at least one factor of production is fixed and cannot be changed.

MC

is an abbreviation for Marginal Cost, which represents the change in total cost that arises when the quantity produced is incremented by one unit.

ATC

Average Total Cost is determined by dividing the total production expense by the output quantity.

Perfectly Competitive Firm

A firm that operates in a market where there are many buyers and sellers, the products are homogeneous, and no single buyer or seller can influence the market price.