Under the _____________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and shareholder value

Q. Under the _____________, 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: Shareholder theory.