________ is the name given to the processes surrounding recognition of the principal-agent problem and ways to align agents with the interests of the principals.
A)Principal theory
B)Interested party theory
C)Agency theory
D)Compensation process theory

Question

Quizplus · Accepted Answer

Agency theory is the name given to the processes surrounding recognition of the principal-agent problem and ways to align agents with the interests of the principals. It focuses on the relationship between principals, such as shareholders, and agents, such as executives, and how to mitigate conflicts of interest and ensure that agents act in the best interests of principals. The other options are not the correct names for this theory.

________ Is the Name Given to the Processes Surrounding Recognition