1) Corporate Governance is a________ approach.
a) top-down
b) bottom-up
c) hybrid
d) scientific
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The correct answer is OPTION A: Top-down.
- Corporate governance is the process of directing and governing businesses.
- The board of directors is in charge of the company's governance.
- The shareholders' governance responsibilities include appointing directors and auditors and ensuring that a robust governance framework is in place.
- The top-down approach focuses on higher-ranking authorities setting higher goals that will trickle down to lower-level employees' duties.
- Bottom-up communication, on the other hand, entails a decision-making process that involves all employees in the company's objectives.
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