Certificate of Cloud Security Knowledge (CCSK) Practice Test

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Good governance acknowledges the rights of which group as the true owners of a corporation?

Employees

Shareholders

The correct answer is shareholders because they hold ownership stakes in the corporation, which entitles them to a portion of the profits and a say in important company decisions, such as electing the board of directors. Good governance is fundamentally about benefiting the shareholders, whose investments fund the organization and whose interests should be prioritized in decision-making processes. Shareholders typically have the right to vote on key issues, which empowers them to influence the direction and management of the company.

In this context, while employees contribute significantly to the organization's success, they do not hold ownership rights in the same way shareholders do. Customers, although essential for revenue generation, do not have ownership stakes in the corporation and thus have no governance rights. Management, while responsible for the day-to-day operations and strategic decisions of the company, acts on behalf of the shareholders and is accountable to them. Their authority is derived from the governance framework that prioritizes shareholder interests above their own.

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Customers

Management

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