Which Term Refers to the Combination of External and Internal

question 82

Multiple Choice

Which term refers to the combination of external and internal mechanisms implemented to safeguard the assets of a company and protect shareholders' rights?

• A) consolidation
• B) transfer pricing
• C) balanced scorecard
• D) corporate governance

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Definitions:

Parent Company

An entity that owns enough voting stock in another corporation to control its management and operations.

Subsidiary Company

A company controlled by another company, referred to as the parent company, through ownership of more than 50% of its voting stock.

Marketable Securities

Financial instruments that are easily convertible into cash due to their high liquidity and short maturity period.

Trading Securities

Financial instruments bought and held primarily for the purpose of selling them in the near term to profit from price changes.