The Primary Objective of Corporate Governance

The Primary Objective of Corporate Governance
I have learned that corporate governance refers to a system by which corporations are controlled and directed. In other words, it entails the overall structures and processes that are used to manage and direct a firm’s activities and operations. The primary objective of corporate governance is to facilitate the credibility, viability, effectiveness, and sustainability of a company (“Corporate Governance,” 2022). The American corporate governance model comprises shareholders who are owners, the board of directors who gives oversight of all activities, and the manager who controls others. A corporate board focuses on strategic planning, defining goals and objectives and setting measurable targets among others. In contrast, the administrative board focuses on the daily operations, gives authority, and implements the decisions given by the board. One of the significant lessons I have learned is that the chief executive officer (CEO) or manager is a crucial change agent in a firm.
In reality, corporate governance is a significant topic that has helped me understand how corporations run smoothly and the different roles and responsibilities of various agents. For instance, shareholders are the owners, and the board gives oversight and enacts policies to ensure that a company is operating well. In addition, managers are expected to control employees and implement the strategic decisions made by the board of directors. Since the directors are entitled to control and monitor a firm to ensure that it operates as expected, these individuals must have proper management skills. As such, the elected members ought to have the expertise and credentials so that they can make sound judgments. Most importantly, every agent plays a significant role, and when all collaborate an organization performs better. Topic 5: Financing the Venture
No business can operate smoothly without appropriate resources. That is where the informal investors, angels, and venture capital firms come in place. Specifically, it is not easy to get investors. For those who get referrals, they must be permitted to use the names of those who referred them when contacting an investor. Before investors put their money in specific businesses, they are likely to review the business plan, see the design or prototype, or meet the team of the management (“Financing the Venture,” 2022). When it comes to a venture capital firm, consists of numerous investors who have money or can facilitate raising the required amount of funds that are needed for the venture development. In addition, venture capital organizations have established professional management and capi...