As the owners of the firm, the shareholders, became separated from those who managed the firm, the issue of _______ became important:
A) service leadership
B) institutional economics
C) corporate social flexibility
D) corporate governance
E) only a and b above

Question

Quizplus · Accepted Answer

Corporate governance became important as it addresses the system of rules, practices, and processes by which a firm is directed and controlled, ensuring that the interests of shareholders are protected when ownership and management are separated.

As the Owners of the Firm, the Shareholders, Became Separated