According to ________ theory, ________ directors tend to identify with the corporation.

Question

Quizplus · Accepted Answer

According to stewardship theory, inside directors tend to identify with the corporation and act in its best interests, rather than solely in their own personal interests. Choice A (agency theory) also focuses on the potential conflict between the interests of managers and shareholders, but does not specifically address director identification with the corporation. Choice B (corporate governance theory) is too broad to provide a clear answer without more context. Choice D (corporate governance theory) also does not address the concept of director identification with the corporation. Choice E (stewardship theory) suggests that outside directors may have a different perspective than inside directors, but does not address the identification issue.

According to ________ Theory, ________ Directors Tend to Identify with the Corporation

According to Theory, Directors Tend to Identify with the Corporation