Question

Corporate governance is defined as _____. a. the memos sent out by upper management on appropriate conduct b. formal systems of accountability, oversight, and control c. the members of the Board of Directors d. classic economic precepts, including the goal of maximizing wealth e. the management style of the firm's CEO

Answer 1

The answer is: B) formal systems of accountability, oversight and control

Step-by-step explanation:

Corporate governance is the system by which companies are operated and controlled. It includes the rules, control systems, policies and resolutions that dictate corporate behavior.

Corporate governance is needed in order to address the possibility of conflicts of interests between stakeholders (mostly between shareholders and management).