Corporate Governance Is Best Defined As

question 20

Multiple Choice

Corporate governance is best defined as:

• A)the system of laws and regulations that control corporations.
• B)the system of controls,regulations,and incentives designed to prevent fraud and minimize conflicts of interest.
• C)the system that determines who controls and runs a corporation.
• D)the system that minimizes agency costs between bondholders and stockholders.

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Definitions:

Horizontally Growth

Expansion strategy whereby a company grows by acquiring or merging with firms in the same industry at the same level of the supply chain.

Synergies

The additional value created by the combination of two or more companies, parts, or processes to achieve greater performance as a whole than the sum of their individual parts.

Goodwill

An intangible asset representing the excess value paid for a company over its net assets at the time of acquisition, reflecting the company's reputation, brand, and other unquantifiable attributes.

Acquisition Expense

Costs directly associated with acquiring new assets or businesses, including legal fees, due diligence costs, advisory fees, and other related expenses.