The Revised Version of "Principles of Corporate Governance" of the Organization

question 10

Multiple Choice

The revised version of "Principles of Corporate Governance" of the Organization for Economic Cooperation and Development insists on:

• A) lesser incentives for directors to ensure their corporations are not breaking the law.
• B) lesser transparency within corporate structures.
• C) greater concealment of corporate governance policies to avoid conflicts of interest.
• D) greater protection for whistleblowers.

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Definitions:

Noncontrolling Interest

Represents the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Variable Interest Entities (VIEs)

Entities in which an investor holds a controlling interest that is not based on a majority of voting rights, requiring special accounting treatment under financial reporting standards.

Voting Stock

Shares that give the shareholder the right to vote on important company decisions, essentially similar to voting common stock but may include different classes of stock.