Question

Corporate governance is the system ________.

1) that protects citizens against unethical state government
2) of monitoring corporate political donations
3) of monitoring an industry, such as attorneys, to ensure ethical practices
4) of governing an industry, such as the trucking industry, to protect customers
5) of governing a company so that the interests of corporate owners and other stakeholders are protected

Answer 1

Corporate governance is the system of governing a company to protect the interests of corporate owners and stakeholders. It involves the board of directors, auditing firms, and outside investors who monitor top executives.

Step-by-step explanation:

Corporate governance is the system of governing a company so that the interests of corporate owners and other stakeholders are protected. It includes institutions such as the board of directors, auditing firms, and outside investors who oversee the actions of top executives. The board of directors, elected by shareholders, provides oversight and governance, while auditing firms review financial records for accuracy. Outside investors, like large shareholders, also play a role in monitoring corporate governance.