Which of the Following Is an Indication of Good Corporate

question 31

Multiple Choice

Which of the following is an indication of good corporate governance?

• A)A company has a board of directors made up entirely of the company's top managers,who have the most comprehensive knowledge of the company's business.
• B)A company's annual report includes 170 pages of notes written by a Harvard PhD.
• C)A company's external auditors are independent enough to stand up to the company's executives on any given accounting issue.
• D)The company has the external auditors prepare,as well as audit,its financial statements.

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Definitions:

Direct Democracy

A form of democracy in which people directly decide on policy initiatives without intermediary representatives or officials.

Fort Sumter

A federal fort in Charleston Harbor, South Carolina, notable for the first shots of the American Civil War being fired there in 1861.

Charleston Harbor

a notable body of water located in South Carolina, known historically for its strategic importance during both the American Revolution and the Civil War.

Civil War

A conflict between citizens of the same country.