Any system that aims to better align management activities with the interests of shareholders is known as:
A) effective control
B) principal-agent control
C) corporate governance
D) activity-based control
E) a balanced scorecard.

Question

Quizplus · Accepted Answer

Corporate governance is a system of rules, practices, and processes by which a company is directed and controlled in order to better align management activities with the interests of shareholders. The aim of corporate governance is to create a sustainable business that can succeed over the long term, which benefits both the shareholders and the company itself. Effective control and principal-agent control are related concepts, but they are not as comprehensive as corporate governance. Activity-based control focuses on managing costs and improving efficiency, and the balanced scorecard is a performance measurement system that includes financial and non-financial metrics.

Any System That Aims to Better Align Management Activities with the Interests