Economics A-Level
Corporate governance
What Corporate governance means in Economics A-Level, as defined for AQA.
Definition of Corporate governance
Check what you remember
Read the wording for your board, then hide it and explain Corporate governance in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Mechanisms used to align the objectives of managers with those of shareholders, such as performance-related pay or employee share ownership schemes.
Topics that use Corporate governance
- The objectives of firms (AQA A-Level)
Related terms
- Bounded rationality
- Business objectives
- Corporate social responsibility
- Firm performance and efficiency
- Marginal cost
- Marginal revenue
- Principal-agent problem
- Profit maximisation
Using Corporate governance in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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