Which of the Following Statements Is FALSE

question 17

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 principles, 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 depend on cultural norms.

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Definitions:

Whistle-Blowing

The act of exposing any kind of information or activity deemed illegal, unethical, or not correct within an organization by someone inside that organization.

Wrongdoing

Actions or behaviors that are illegal, unethical, or immoral, which may harm others or violate norms and standards.

Illegal

Activities or actions that are forbidden by law and subject to government penalties.

Entitlements

Rights or privileges granted to individuals or groups, often by law, allowing access to specific benefits or services.