Corporate Governance

question 13

Multiple Choice

Corporate governance:

• A)Can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm
• B)Seeks to serve society's interests by focusing on social, political and economic issues such as poverty, social justice, education, health and the environment
• C)Can be defined as the system by which business corporations are directed and controlled
• D)Can be defined as the development that meets humanity's needs without harming future generations

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Definitions:

Contractual Terms

Stipulations, clauses, and conditions outlined in a contract that define the obligations, rights, and duties of the parties involved.

Securities Act Of 1933

A U.S federal law enacted to ensure more transparency in financial statements so investors can make informed decisions about investments, and to establish laws against misrepresentation and fraudulent activities in the securities markets.

Registration Statement

A set of documents, including financial statements and a prospectus, filed with the Securities and Exchange Commission before a company offers securities for sale to the public.

Privity Of Contract

The principle that a contract imposes rights and obligations only on the parties to the contract, and not on any third parties.