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    Question

    Corporate governance ensures:

    A Profit maximization Correct Answer Incorrect Answer
    B Ethical management and transparency Correct Answer Incorrect Answer
    C Tax reduction Correct Answer Incorrect Answer
    D Cost control Correct Answer Incorrect Answer
    E Market dominance Correct Answer Incorrect Answer

    Solution

    Explanation:
    Corporate Governance refers to the system of rules, practices, and processes by which a company is directed and controlled . At its core, corporate governance ensures: ·         Transparency → Clear and truthful disclosure of financial and operational information ·         Accountability → Management is answerable to shareholders and stakeholders ·         Fairness → Equal treatment of all stakeholders (shareholders, employees, creditors, etc.) ·         Ethical conduct → Decisions are taken in a morally responsible manner Therefore, the correct answer is ethical management and transparency , which captures the essence of corporate governance.

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