CFA Practice Question

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CFA Practice Question

Which statement is true?
A. The Principles of Corporate Governance mandate the adoption of a single corporate governance regime.
B. Stakeholder groups of a company typically share similar goals and needs.
C. Media attention can motivate politicians and regulators to introduce corporate governance reforms or enforce laws that protect stakeholders and society at large.
Explanation: A is false. The principles were designed to serve as a framework that can be adopted by any number of corporate governance systems. Corporate governance regulations differ across countries, although there is a trend toward convergence. However, there is not a widely accepted single definition of corporate governance in practice.

B is false. The interests of one group may conflict with those of another group.

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