Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)It is important to keep in mind that good governance is value enhancing and so,in principle,is something investors in the firm should strive for.
• B)Corporate governance is a system of checks and balances that trades off costs and benefits.
• C)Because good governance is based upon a basic set of principals,like those detailed in the Cadbury Commission's findings,one should expect all firms to display similar governance structures.
• D)The costs and benefits of a corporate governance system also depends on cultural norms.

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Definitions:

Liquidation

The process of winding up a company's financial affairs by selling its assets to pay off its debts.

Predictive Value

The ability of financial information to help users make accurate predictions about future outcomes.

Future Events

Incidents or occurrences that have not yet happened but are anticipated or expected to occur in the course of a business's operation.

Constraint In Accounting

In accounting, constraints involve the limitations or boundaries that must be considered when preparing financial statements, such as materiality, cost-benefit considerations, and timeliness.