Correct Option (1)
Statement 1 is correct. The passage explicitly states that good corporate governance is known to have a positive influence on the share price of the company. It also mentions that a clean image on the corporate governance front could make it easier for companies to source capital at more reasonable costs and contributes to market confidence.
Incorrect Options:
Statement 2 is incorrect. The passage does not claim that good corporate governance always leads to a rapid increase in business turnover. While it highlights benefits like increased market confidence and positive influence on share price, it does not guarantee rapid business growth or turnover.
Statement 3 is incorrect. The passage states that corporate governance is "one of the criteria" that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It does not identify it as the "main criterion" or the sole determinant for their investment decisions.