This is the set of laws, policies, incentives, and monitors designed to handle the issues arising from the separation of ownership and control.
A) agency theory
B) corporate governance
C) defined benefit plan
D) invisible hand

Question

Quizplus · Accepted Answer

Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. This concept directly addresses the issues that arise from the separation of ownership (shareholders) and control (managers) of a company.

This Is the Set of Laws, Policies, Incentives, and Monitors