Which practice best reflects the principle of material disclosure in corporate governance?
Correct answer: A. Reporting information that could influence investor decisions
- A. Reporting information that could influence investor decisions
- B. Releasing only information that presents the company positively
- C. Sharing important results privately with selected investors
- D. Publishing routine office notices before financial results
Explanation
Material information is information that a reasonable investor may consider important when making an investment decision. Selective disclosure and one-sided reporting weaken fairness and market confidence.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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