Why corporate governance is necessary for business growth explain?

1.	Why corporate governance is necessary for business growth explain?
Answer» Corporate GOVERNANCE is very important for business GROWTH . This is because of FOLLOWING reasons: 1. Corporate governance is introduced to increase the accountability of company or business ESTABLISHMENT and to avoid massive disasters or fruads before they occur. 2. Better corporate governance ensures corporate success and better economic growth. 3. Strong corporate governance maintains confidence of investors which HELPS the company to raise capital efficiently and effectively. 4. It lowers the capital cost. 5. There is a positive impact on the share price.

Answer»

Corporate GOVERNANCE is very important for business GROWTH . This is because of FOLLOWING reasons:

1. Corporate governance is introduced to increase the accountability of company or business ESTABLISHMENT and to avoid massive disasters or fruads before they occur.

2. Better corporate governance ensures corporate success and better economic growth.

3. Strong corporate governance maintains confidence of investors which HELPS the company to raise capital efficiently and effectively.

4. It lowers the capital cost.

5. There is a positive impact on the share price.

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