Which of the following is a governance concept?

• A. Judgment
• B. Profit margin
• C. Customer satisfaction
• D. Market capitalization

Answer: (C)

Governance is about how an organization directs itself, accounts for its actions, and monitors whether it’s delivering on what it promises to stakeholders. In that framework, customer satisfaction functions as a governance measure because it reflects whether the organization is actually delivering value to those it serves and meeting their expectations. Monitoring customer satisfaction helps the board and management assess whether strategic objectives are being achieved, and whether controls and accountability mechanisms are working to protect stakeholder interests.

Judgment is a personal decision-making trait, not a governance construct. Profit margin is a financial performance metric, not how governance oversees and guides the organization. Market capitalization is a market‑driven valuation metric, also not governance in itself.