How Is Corporate Governance Best Defined

question 24

Multiple Choice

How is corporate governance best defined?

• A) The extent to which the content of workplace decisions is aligned with a firm's stated strategic direction
• B) The formal system of oversight, accountability, and control for organizational decisions and resources
• C) The philosophy that a board or CEO holds regarding accounting methods
• D) The exercise of control and authority by those in mid-management positions
• E) A system of decentralized mechanisms that assists a firm in meeting its goals

---

Definitions:

Capital Structure

The mix of debt and equity maintained by a firm.

Exchange Rate Risk

The risk related to having international operations in a world where relative currency values vary.

September Futures Contract

A futures contract with an expiration date in September where assets can be commodities or financial instruments, stipulating sale or purchase terms for future delivery.

Silver

A precious metal with high thermal and electrical conductivity, used in jewelry, currency, and as an investment commodity.