Corporate Governance Definition and Principles

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12 Questions

What does corporate governance refer to according to the World Bank?

A system of rules, practices, and processes for business organizations

Which aspect of corporate governance involves protecting outside investors from insiders' expropriation?

Mechanisms through which outside investors protect themselves

According to the OECD, what does corporate governance involve?

Laws, regulations, and accepted business practices

In a market economy, corporate governance governs the relationship between:

Corporate managers and entrepreneurs on one side and investors on the other

What is the main purpose of corporate governance?

To provide confidence in capital markets

Who are the stakeholders whose interests need to be balanced in corporate governance?

Management and shareholders

What is the primary focus of corporate governance as defined in the text?

Enhancing business prosperity and corporate disclosure

What is the joint responsibility imposed on the Board of Directors and management?

Protecting shareholder rights and enhancing shareholder value

How does the Board of Directors act as a check against management according to the text?

Ensuring accountability to shareholders and acting transparently

Which party is NOT listed as a key player in good corporate governance according to the text?


What are some benefits of good corporate governance mentioned in the text?

Enhanced credibility, improved valuations, better marketability

What principles are part of corporate governance according to the text?

Rights and Equitable Treatment of Shareholders only

Explore the concept of corporate governance, which involves the system by which business organizations are directed and controlled. Learn about the rules, practices, and processes that promote fairness, transparency, and accountability within companies. Understand how corporate governance governs relationships between corporate managers and entrepreneurs in market economies.

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