Under which theory both internal and external corporate governance mechanisms are Intended to induce managerial actions that maximize profit and shareholder value.

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Question:

Under which theory both internal and external corporate governance mechanisms are Intended to induce managerial actions that maximize profit and shareholder value.

A.

Shareholder theory.

B.

Agency theory.

C.

Stakeholder theory.

D.

Corporate governance theory.

Answer» d. Corporate governance theory.

Note: The above multiple-choice question is for all general and Competitive Exams in India.