Question

Which of the following statements accurately describes the shift in ownership structure and its impact on e-governance?

1. Public financial institutions and mutual funds have become major shareholders in many large companies.
2. This ownership shift necessitates improved efficiency, accountability, and transparency, which e-governance helps achieve.
3. Management is being compelled to use e-governance to ensure consumer-friendly policies due to this ownership change.

• A. i only
• B. All of these
• C. iii only
• D. None of these

Answer 1

Answer:

B. All of these

The modern corporate landscape has witnessed a significant transformation in ownership structures. Traditionally dominated by individual promoters or families, many major corporations now see large public financial institutions and mutual funds as their principal shareholders. This change implies a broader base of ownership, with entities managing public money holding substantial stakes. Consequently, there is increased pressure on corporate management to operate with a higher degree of efficiency, accountability, and transparency. E-governance systems are instrumental in meeting these demands. They provide the technological infrastructure for better data management, streamlined operations, enhanced communication with a diverse shareholder base, and robust reporting mechanisms, thereby ensuring that management acts in the best interest of all stakeholders and implements consumer-friendly policies.