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Corporate governance is best defined as: a. the system of laws and regulations that control corporations. b. the conflict of interest between managers and investors that derives from the separation of ownership and control in a corporation. c. the system that minimizes agency costs between bondholders and stockholders. d. the system that determines who controls and runs a corporation. e. the system of controls, regulations, and incentives designed to prevent fraud and minimize conflicts of interest in a corporation.

Question

Corporate governance is best defined as:

a. the system of laws and regulations that control corporations.

b. the conflict of interest between managers and investors that derives from the separation of ownership and control in a corporation.

c. the system that minimizes agency costs between bondholders and stockholders.

d. the system that determines who controls and runs a corporation.

e. the system of controls, regulations, and incentives designed to prevent fraud and minimize conflicts of interest in a corporation.

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