Which of the following is true of the "comply or explain" approach to corporate governance? Choose from an option below

A$.$ It set stiff financial penalties for companies that refused to abide by the operational standards.

B$.$ It gave companies the flexibility to comply with the governance standards or justify why they didn't in their corporate documents.

C$.$ It was extremely explicit when it came to defining what would be acceptable explanations for noncompliance.

D$.$ It proved to be an effective deterrent to financial scandals and reduced the incidence of unethical behavior in corporations.