Which of the following best describes the role that corporate governance plays in a company?

Contemporary Auditing
11th Edition
ISBN:9781337650380
Author:KNAPP
Publisher:KNAPP
Chapter1: Comprehensive Cases
Section1.6: Le-nature’s Inc.
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Which of the following best describes the role that corporate governance plays in a company?
Shareholders vote to decide who should be members of the board of directors.
Holding the management team accountable to shareholders and other stakeholders for how they use the
entity's resources.
Management often is compensated based on the company's profitability.
Management decides which accounting principles are the most appropriate.
Transcribed Image Text:Which of the following best describes the role that corporate governance plays in a company? Shareholders vote to decide who should be members of the board of directors. Holding the management team accountable to shareholders and other stakeholders for how they use the entity's resources. Management often is compensated based on the company's profitability. Management decides which accounting principles are the most appropriate.
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