This is the set of laws, policies, incentives, and monitors designed to handle the issues arising from the separation of ownership and control.
A)Agency theory
B)Corporate governance
C)Defined benefit plan
D)Invisible hand

Question

Quizplus · Accepted Answer

Corporate governance refers to the set of laws, policies, incentives, and monitors that are designed to handle issues arising from the separation of ownership and control in a corporation. It aims to ensure that the interests of shareholders are protected and that the management team acts in the best interests of the company. Agency theory also deals with the same issues, but it is a theoretical framework used to study the relationship between principals (shareholders) and agents (management). Defined benefit plans and the invisible hand are irrelevant to the concept of corporate governance.

This Is the Set of Laws, Policies, Incentives, and Monitors