Question

Which one of the following statements is TRUE? a. One tool of corporate governance is the location of the company headquarters. b. An example of an agency relationship is when a supervisor hires a forklift operator. c. One tool of corporate governance is the use of accounting control systems. d. One tool of corporate governance is a company's tax avoidance strategy. e. An example of asset switching is an option to exchange one piece of real estate for another

Answer 1

Answer:

The correct answer is letter "C": One tool of corporate governance is the use of accounting control systems.

Explanation:

Corporate governance includes the rules, practices, and processes a company counts on at the moment of handling its operations. Corporate governance walks hand-in-hand with the firm's management since thanks to the administration of the entity the corporate governance of a firm can be implemented.  

Accounting tools are part of the different systems a company selects to operate within its corporate governance.