Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 0 of 6
Which of the following best defines the concept of corporate governance?
B. Identifiable and measurable accountabilities for all stakeholders
C. Corporate values and governance structures that ensure business is conducted in an ethical, competent, fair, and professional manner
D. A system of principles, policies, and procedures used to manage and control the activities of a corporation so as to overcome conflicts of interest inherent in the corporate form
A. A system for monitoring managers' activities, rewarding performance, and disciplining misbehavior
B. Identifiable and measurable accountabilities for all stakeholders
C. Corporate values and governance structures that ensure business is conducted in an ethical, competent, fair, and professional manner
D. A system of principles, policies, and procedures used to manage and control the activities of a corporation so as to overcome conflicts of interest inherent in the corporate form
User Contributed Comments 4
| User | Comment |
|---|---|
| danlan | It's more used to overcome conflicts among different group in a same corporate, that's why D and not A |
| Poorvi | I thought it was C! That is Corporate Ethics I guess. |
| group | D is a more complete answer since it talks about priniciples, policies and procedures used to manage and control activities of a corporation in order to overcome conflicts of interest inherent in the corporate form. |
| ascruggs92 | It is also not A because it is not just to monitor management, but to look out for shareholders best interests in general |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
calculate and interpret alternative price multiples and dividend yield;
calculate and interpret underlying earnings, explain methods of normalizing earnings per share (EPS), and calculate normalized EPS;
explain and justify the use of earnings yield (E/P);
describe fundamental factors that influence alternative price multiples and dividend yield;
calculate and interpret the justified price-to-earnings ratio (P/E), price-to-book ratio (P/B), and price-to-sales ratio (P/S) for a stock, based on forecasted fundamentals;
calculate and interpret a predicted P/E, given a cross-sectional regression on fundamentals, and explain limitations to the cross-sectional regression methodology;
evaluate a stock by the method of comparables and explain the importance of fundamentals in using the method of comparables;
calculate and interpret the P/E-to-growth ratio (PEG) and explain its use in relative valuation;
calculate and explain the use of price multiples in determining terminal value in a multistage discounted cash flow (DCF) model;
explain alternative definitions of cash flow used in price and enterprise value (EV) multiples and describe limitations of each definition;
calculate and interpret EV multiples and evaluate the use of EV/EBITDA;
CFA® 2025 Level II Curriculum, Volume 4, Module 23.