TipsGet tips through StudyGPTQuestion textCorporate governance keeps roles of ________ and management.a.customersb.employeec.shareholdersd.owners
Question
Corporate governance keeps roles of ________ and management.
a. customers
b. employee
c. shareholders
d. owners
Solution
The correct answer is c. shareholders.
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.
However, the primary roles that corporate governance keeps distinct are those of the shareholders and management. Shareholders are the owners of the company and they elect the board of directors to oversee the management and ensure that their interests are protected. On the other hand, the management runs the day-to-day operations of the company.
So, the roles that corporate governance keeps distinct are those of the shareholders and management.
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