Final answer:
Corporate governance is true to be a system of control for defining responsibility in corporations, evidenced by boards, audits, and shareholder oversight.The Statement is True.
Step-by-step explanation:
The statement that corporate governance refers to a system of organizational control used to define and establish responsibility and accountability among major participants in a corporation is true.
Corporate governance includes various institutions such as the board of directors, elected by shareholders to provide oversight of top executives; auditing firms hired to review financial records; and outside investors like large shareholders.
These entities work together to ensure that stakeholders are provided with accurate and reasonable information regarding the company's operations. However, governance mechanisms can fail, as evidenced in the case of Lehman Brothers, where corporate governance did not deliver reliable financial information to the investors.