Which of the following statements regarding stakeholder theory is incorrect?
A)it dispenses with the assumption that the sole important relationship is between agents (managers)and principals (shareholders)
B)it considers the corporation from a much broader perspective,whereby shareholders are only one of many potential stakeholder groups
C)to ignore society is to threaten the equilibrium that it provides
D)it assumes that the sole important relationship is between agents (managers)and principals (shareholders)

Question

Quizplus · Accepted Answer

The statement "it assumes that the sole important relationship is between agents (managers)and principals (shareholders)" is incorrect. Stakeholder theory emphasizes that corporations have obligations to multiple groups beyond just the shareholders, and that these relationships are equally important.

Which of the Following Statements Regarding Stakeholder Theory Is Incorrect