Question

In what ways did Volkswagen fulfill the requirements of effective corporate governance? Multiple Choice

A.Properly oversaw the company's financial accounting and financial reporting practices.
B.Evaluated the caliber of senior executives' strategic leadership skills.
C.Critically appraised the company's direction, strategy, and business approaches.
D.Instituted a compensation plan that rewarded actions aimed at increasing shareholder value.
E.Volkswagen's board of directors did not fulfill any of its primary obligations to shareholders.

Answer 1

Volkswagen fulfilled the requirements of effective corporate governance by overseeing financial practices, evaluating leadership skills, and instituting a value-based compensation plan.

Step-by-step explanation:

Volkswagen fulfilled the requirements of effective corporate governance in several ways. Firstly, the company properly oversaw its financial accounting and financial reporting practices, ensuring transparency and accountability. Secondly, Volkswagen evaluated the caliber of senior executives' strategic leadership skills, contributing to effective decision-making. Finally, the company instituted a compensation plan that rewarded actions aimed at increasing shareholder value, aligning the interests of executives and shareholders.