Question

While the corporate governance problem is not confined to the United States, Multiple Choice

a. the U.S. legal system, with lawsuits used only as a last resort, ensured that any conflicts of interest would soon be a thing of the past
b. none of the options
c. it has reached its high point in the United States.
d . it can actually be a much more serious problem in other parts of the world, where the legal protection of shareholders is weak or nonexistent

Answer 1

Corporate governance refers to institutions overseeing executives, important for protecting shareholders' interests. The problem is even more serious in countries with weak legal protection for shareholders, differentiating these situations from the U.S. where some safeguards exist. Thus, the correct answer is option d.

Step-by-step explanation:

The question is addressing the issue of corporate governance and its problems not only in the United States but globally. Corporate governance refers to the institutions and practices designed to oversee the actions of a company's top executives to ensure they act in the best interests of shareholders. This includes mechanisms such as the board of directors, auditing firms, and outside investors holding large shares. In contrast to the United States, where there is some degree of legal protection for shareholders despite instances where corporate governance has failed (as in the case of Lehman Brothers), the problem can be even more grave in countries where shareholder legal protection is weak or nonexistent. Therefore, the correct answer to the student's question would be "d". it can actually be a much more serious problem in other parts of the world, where the legal protection of shareholders is weak or nonexistent.