Which factor belongs to the core principles of corporate governance?

Rationale

Transparency is a core principle of corporate governance.

Transparency ensures that stakeholders have access to important information regarding a company's operations, decisions, and financial status, promoting trust and accountability in corporate governance practices.

A (Repeatability) YOUR ANSWER

Repeatability refers to the ability to achieve consistent results under the same conditions. While it is important in various contexts, it does not directly pertain to corporate governance principles, which focus more on ethics, accountability, and stakeholder engagement.

B (Transparency) CORRECT

Transparency is fundamental in corporate governance as it allows stakeholders, including investors and the public, to understand the decision-making processes and financial health of the organization. This openness fosters trust and is essential for ethical leadership and accountability within companies.

C (Customer centricity) YOUR ANSWER

Customer centricity emphasizes prioritizing the needs and preferences of customers in business strategies. Although important for business success, it is not a core principle of corporate governance, which primarily addresses the relationships among management, boards, shareholders, and other stakeholders.

D (Reliability) YOUR ANSWER

Reliability focuses on the consistency and dependability of a company's products or services. While it is a valuable attribute for businesses, it does not specifically relate to corporate governance principles, which are more concerned with ethical conduct, oversight, and stakeholder relations.

Conclusion

Corporate governance encompasses a set of principles designed to enhance accountability and ethical behavior within organizations. Transparency stands out as a critical factor, enabling stakeholders to make informed decisions and fostering trust. Other factors, such as repeatability, customer centricity, and reliability, while important for business operations, do not directly align with the foundational principles of corporate governance.

Which factor belongs to the core principles of corporate governance?

Transparency is a core principle of corporate governance.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test