Assertion (A): Good corporate governance is an important instrument of investor protection. Reason (R): Governance mechanisms such as timely disclosure of material information and directors’ duties to the company and all its shareholders help protect shareholder interests against abuse by insiders. Which one of the following options is correct?
Both (A) and (R) are correct and (R) is the right explanation of (A)
Both A and R are correct, and R correctly explains A. Material disclosure enables informed investment decisions, while directors’ duties to the company and all shareholders help constrain insider abuse, including abuse of minority shareholders. These mechanisms directly explain how good corporate governance protects investors.
Important Questions from Corporate governance and business ethics
Which one of the following is not a norm of corporate governance ?
Which one among the following is not a true statement?
Who among the following has not given a model on Corporate Social Responsibility (CSR)?
For customers, which are the areas of ethical and social responsibility concerns?
A. Product Safety
B. Fair Price
C. Fair Wages
D. TQM
E. Proper disclosures and information
Choose the correct answer from the options given below:
"Corporate governance is to conduct the business in accordance with the owner's (shareholders) desires" is conceptualized by
