Corporate Governance Structures and Relationships Are Shaped by Internal and External

Multiple Choice

Corporate governance structures and relationships are shaped by internal and external mechanisms. Which of the following is an external mechanism?

A) State and federal statues require a baseline corporate governance system
B) Audit committees must consist of at least three members all of whom are independent of management and the entity
C) All directors must be independent of management
D) Each listed company must have an internal audit function