Which term describes the system by which companies are directed and controlled?

The term that describes the system by which companies are directed and controlled is corporate governance. This concept encompasses the mechanisms, processes, and relations by which corporations are operated and controlled, focusing on the relationships among the many stakeholders involved, including the shareholders, management, and the board of directors.

Corporate governance plays a critical role in establishing accountability and transparency within an organization, ensuring that the interests of stakeholders are protected and that the company adheres to legal and ethical standards. By setting forth a framework for decision-making and control, corporate governance helps to maintain integrity and moral behavior within the corporation.

In contrast, the board of directors refers to a group of individuals elected to represent shareholders and provide oversight and strategic direction, but it is just one component of the broader corporate governance framework. A management information system is concerned with the systems that provide information for managing an organization and does not specifically refer to the governance of the company. Meanwhile, a computerized accounting system pertains to the technology used for maintaining financial records, which is also not a comprehensive descriptor of governance.