Agency theory
A)does not look at behaviour at all
B)looks at management behaviour and employees
C)looks at inter-management behaviour
D)looks at the link between management behaviour and shareholders interest

Question

Quizplus · Accepted Answer

Agency theory specifically focuses on the relationship between management and shareholders, highlighting how managers may act in their own self-interest instead of pursuing the best interests of the shareholders. This theory seeks to understand the potential conflicts of interest that may arise between the two parties and how to mitigate these conflicts.

Agency Theory