CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Which is NOT a benefit of an effective corporate governance structure?

A. Higher credit ratings
B. Lower executive compensations
C. Lower default risk
Correct Answer: B

An effective corporate governance structure encourages "proper" remuneration policies that motivate managers to maximize shareholder value. Lower executive compensations is not always better for the company.

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