Joshua is a member of management at the firm where he works,Great Coffee Company.Lately he has been studying how shareholder and management interests diverge and how his firm can motivate its management to act like owners when managing the corporation.Joshua is utilizing the ________ field of thought.

Question

Quizplus · Accepted Answer

Joshua's focus on the divergence of shareholder and management interests and motivating management to act like owners suggest that he is studying agency theory, which is concerned with the conflicts that can arise between a company's owners (shareholders) and its managers (agents). This makes D) agency the best choice.

Joshua Is a Member of Management at the Firm Where