The internal relationship between shareholders,the board of directors and the managers of a company is called:

Question

Quizplus · Accepted Answer

The internal relationship between shareholders, the board of directors, and the managers of a company is referred to as corporate governance. It encompasses the framework of policies, procedures, and practices through which a company governs itself and manages its operations in a fair, transparent, and accountable manner. The term "agency theory" describes the relationship between a principal and an agent, where the principal hires the agent to act on their behalf and ensure their interests are protected. However, agency theory is related to, but not the same as, corporate governance. Commercial theory and organizational governance are not relevant to this term.

The Internal Relationship Between Shareholders,the Board of Directors and the Managers