Final answer:
The board of directors is responsible for company assets and ensuring the required rate of return is met. Auditing firms review financial records to certify accuracy. Outside investors monitor performance and financial information to protect their interests.
Step-by-step explanation:
The board of directors is responsible for all company assets and ensures that the minimum required rate of return is met. They are elected by the shareholders and provide corporate governance and oversight for top executives. They are the first line of defense in ensuring the company's financial health and performance.
Corporate governance also involves the auditing firm hired to review the company's financial records and certify their accuracy. They play a crucial role in ensuring the transparency and reliability of the company's financial information.
Finally, outside investors, especially large shareholders like those who invest in large mutual funds or pension funds, are an important institution of corporate governance. They monitor the company's performance and financial information to protect their investments and ensure the company operates in their best interests.