The best definition of corporate governance is:

A) The possibility of conflicts between shareholders and management in a large corporation.
B) The process of planning and managing a firm's long-term investments.
C) The actions that are deemed as socially responsible.
D) The manner in which shareholders agree on corporate capital structure.
E) The mechanisms and processes by which corporations are directed and controlled.

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Peggy Phillip · Accepted Answer

Final Answer : E, Explanation :  Corporate governance refers to the systems, principles, and processes by which a company is governed. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. Therefore, option E, which mentions the mechanisms and processes by which corporations are directed and controlled, best encapsulates the concept of corporate governance.

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