ITPEC IP April 2018 Question 72
ITPEC IP April 2018 — Question 72 of 100
Corporate governance is the mechanism by which shareholders and other stakeholders direct, supervise, and monitor company management. It establishes accountability among owners, the board, executives, and stakeholders through oversight, disclosure, controls, and decision structures.
Answer (b)
Why not others:
- compliance means adhering to laws, regulations, and internal rules
- risk management identifies, assesses, and treats uncertainty
- a TOB is a tender offer used to acquire shares, not an ongoing oversight framework
Key rule: Corporate governance controls how a company is directed and held accountable; management runs the business within that framework.
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