Corporate governance is most likely to occur when

A) a board of directors holds the top management accountable for organizational performance.
B) minority members are denied the full benefits of organizational membership.
C) the traditional top-down "do as I say" form of management prevails.
D) top managers guide the performance of an organization as a whole.
E) team leaders report to middle managers about the performance of the non-managerial workers.

Question

Maddie Kerrigan · Accepted Answer

Final Answer : A, Explanation :  Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. One of the key elements of corporate governance is the accountability of top management to the board of directors, who are elected by the shareholders to represent their interests and provide oversight of the company's performance. Therefore, the correct option is A. Choice B is incorrect because it refers to discrimination, which is not related to corporate governance. Choice C is incorrect because it suggests an authoritarian leadership style, which is not conducive to effective corporate governance. Choice D is too broad because it does not specify who guides the performance of the organization. Choice E is incorrect because it describes a hierarchical reporting structure, which is not necessarily a feature of corporate governance.

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