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Corporate governance: This is concerned with the duties and responsibilities of a company’s board of directors in managing the company, and their relationships with the shareholders and other stakeholder groups. Corporate governance guidelines are a set of rules or practices that firms can adopt to reduce agency costs. The guidelines are generally lists of practices that demonstrate how the board of directors will oversee the management of the firm and carry out its responsibilities. In the aftermath of high-profile business failures such as Enron Corp. and WorldCom, Inc., public confidence in corporate governance structures has decreased to very low levels...
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Common topics in this essay:
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