- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 1. Shareholder Conflicts and Management
CFA Practice Question
Which statement is true regarding corporate governance?
A. Countries tend to have similar corporate governance practices.
B. According to Shareholder theory, the most important responsibility of a company's management is its customers.
C. There is a current trend towards convergence of shareholder and stakeholder theories
Explanation: Corporate governance practices can be different from country to country.
According to Shareholder theory, the most important responsibility of a company's management is its shareholders.
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