To Help Achieve Good Governance,international Best Practice Recommends All but Which

question 8

Multiple Choice

To help achieve good governance,international best practice recommends all but which of the following be implemented?

• A)A majority the members of the board of directors should not hold management positions.
• B)Create an independent audit committee to oversee the financial reporting process.
• C)Require the internal audit team report directly to management.
• D)Have a compensation committee that aligns management rewards with shareholder interests.

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Definitions:

Management By Exception

A management style where leaders only intervene when performance deviates significantly from set standards or expectations.

Passive Management

A leadership style characterized by minimal intervention, letting processes and issues unfold or resolve naturally without active direction.

Contingent Reward

A leadership strategy that offers rewards or incentives based on the achievement of specific goals or performance criteria.

Political Conflict

Disagreements or disputes that arise from differences in views, interests, or goals related to governance, policies, or political ideologies.