Opportunistic behavior on the part of strategic leaders at Enron and Tyco has lead to an increase in the importance of
A) having insiders on a company's board of directors
B) institutional investing
C) corporate governance
D) related-party transactions

Question

Quizplus · Accepted Answer

The opportunistic behavior of strategic leaders at Enron and Tyco highlighted the importance of corporate governance - the system of rules, practices, and processes by which a company is directed and controlled. Strong corporate governance is essential for mitigating the risks of unethical behavior on the part of executives and protecting the interests of shareholders and other stakeholders. The other options (having insiders on a company's board of directors, institutional investing, and related-party transactions) are all relevant to corporate governance, but they are not the most critical factor in addressing the specific issues that arose at Enron and Tyco.

Opportunistic Behavior on the Part of Strategic Leaders at Enron