____________suggests that problems arise in organizations because "the top management no longer bear the full results of their decisions unless they own a substantial amount of stock in the corporation."
A) Investment theory
B) Agency theory
C) Strategic theory
D) Management theory

Question

Quizplus · Accepted Answer

This statement aligns with the principles of agency theory, which suggests that conflicts of interest can arise between the principal (shareholders) and agent (top management) when the latter is not fully motivated to act in the best interest of the former. Without owning enough stock, top management may be more focused on their own goals and incentives, rather than those of the shareholders.

____________Suggests That Problems Arise in Organizations Because "The Top Management