The system of checks and balances that guides the decisions of corporate managers is known as
A) implicit contracts.
B) corporate governance.
C) the production function.
D) profit maximization.
E) collective bargaining.

Question

Quizplus · Accepted Answer

Corporate governance refers to the system of checks and balances that guides the decisions of corporate managers. It includes the framework of rules, practices, and processes by which a company is directed and controlled, with the aim of enhancing shareholder value and ensuring accountability. The other options (implicit contracts, the production function, profit maximization, and collective bargaining) are not directly related to the system of checks and balances that guides corporate decision-making.

The System of Checks and Balances That Guides the Decisions