Final answer:
The company is said to lack organizational governance when there is an absence of policies and periodic reviews. Organizational governance encompasses systems and processes that ensure effective and ethical company operations. Option A is correct.
Step-by-step explanation:
The company is said to lack organizational governance when there is an absence of policies and a lack of periodic reviews. Organizational governance refers to the systems and processes put in place to ensure that a company operates effectively and ethically. It includes policies, procedures, and mechanisms for oversight, accountability, and decision-making.
For example, a company with strong organizational governance would have clear policies and procedures in place for various aspects of its operations, such as financial management, human resources, and compliance with regulations. These policies would be regularly reviewed and updated to ensure they remain relevant and effective.
By lacking organizational governance, a company may face various risks, including mismanagement, ethical lapses, and non-compliance with laws and regulations. It also hampers the company's ability to achieve its goals and fulfill its responsibilities to its stakeholders.