The Purpose of Governance Mechanisms in Corporations Is to

question 29

Multiple Choice

The purpose of governance mechanisms in corporations is to

• A) keep employees in line.
• B) reduce the scope and frequency of the agency problem.
• C) satisfy the requirements of the Securities and Exchange Commission (SEC).
• D) limit corporate growth to manageable rates.
• E) none of these choices.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price over a specific period of time.

Prices

The amount of money required to purchase a good, service, or asset.

Shirts

Articles of clothing worn on the upper body, usually having sleeves and a collar, and made from various fabrics.

Hot Drinks

Beverages that are served warm, such as coffee, tea, or hot chocolate.