When the proper tone of corporate governance is in place:
A)Encouraging ethical conduct is unnecessary.
B)Effectiveness is not improved.
C)Risk of fraud tends to increase.
D)Proper stewardship of assets increases.

Question

Quizplus · Accepted Answer

When the proper tone of corporate governance is in place, proper stewardship of assets increases. This means that the leadership is taking responsibility for managing the company's resources and assets in a way that benefits the company, employees, and stakeholders. Ethical conduct is still important and encouraged, but it is not the only factor that improves effectiveness. In fact, a culture of ethical conduct and good corporate governance can help to reduce the risk of fraud and other unethical behavior.

When the Proper Tone of Corporate Governance Is in Place