The Primary Participants in Corporate Governance Do Not Include the

question 53

Multiple Choice

The primary participants in corporate governance do not include the

• A) shareholders.
• B) financial institutions.
• C) management (led by the chief executive officer).
• D) board of directors.

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Definitions:

Contingency Approach

A management theory stating that the best decisions are contingent on the situation and various variables involved.

External Cost

Costs incurred by third parties as a result of an economic transaction, which are not reflected in the transaction's market price, often necessitating government intervention.

Social Cost

The total cost to society, including both private costs incurred by individuals and external costs not accounted for by the market.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.