The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation is called

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The theory described in the question is known as agency theory, which suggests that conflicts arise between managers and shareholders because managers prioritize their own interests over those of the shareholders. This is because managers are employed by the corporation and are motivated to act in their own self-interest, rather than the interest of the shareholders who own the corporation. Therefore, the theory suggests that aligning the interests of the managers with those of the shareholders, by tying managers' compensation to stock ownership, can help to mitigate these conflicts.

The Theory Which States That Problems Arise in Corporations Because