Question

Which of the following factors influences corporate governance practices?

            a.          Securities legislation

            b.         Government regulatory agencies

            c.          The threat of a hostile takeover

            d.         Institutional activism

            e.          All of the above

Answer 1

Option (e) is correct

All the factors given, influence corporate governance practices. Corporate governance are the laws, rules, processes, procedures etc in which the business operates and strive to fulfill its goals.These are various internal and external factors affecting the interests of stakeholders of the company. Securities legislation, Government regulatory agencies, the threat of a hostile takeover and institutional activism are all the factors that affect corporate governance practices.