The correct answer is (b). The German system of corporate governance is based on a two-tier management structure. This means that there are two boards of directors: a supervisory board and a management board. The supervisory board is responsible for overseeing the management of the company, while the management board is responsible for the day-to-day running of the company.
The Anglo-Saxon system of corporate governance, on the other hand, is based on a one-tier management structure. This means that there is only one board of directors, which is responsible for both overseeing the management of the company and the day-to-day running of the company.
The two-tier management structure is designed to provide a greater degree of separation between the ownership and control of a company. This is because the supervisory board is made up of representatives of both shareholders and employees, while the management board is made up of professional managers. This separation of ownership and control is intended to help to protect the interests of both shareholders and employees.
The one-tier management structure, on the other hand, is designed to provide a more efficient and streamlined way of running a company. This is because there is only one board of directors, which can make decisions more quickly and easily. However, the one-tier management structure has been criticized for giving too much power to the management of a company, and for not providing enough protection for the interests of shareholders and employees.