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Questions and Answers

Which theory advocates for considering all stakeholders' interests, not just shareholders?

  • Corporate Governance Theory
  • Stakeholder Theory (correct)
  • Shareholder Theory
  • ESG Theory
  • What is the traditional framework in corporate governance?

  • Adhering to higher ESG standards
  • Maximizing shareholder value (correct)
  • Considering all stakeholders' interests
  • Balancing multiple objectives and conflicts
  • What are the challenges associated with stakeholder theory?

  • Defining, measuring, and balancing non-shareholder objectives
  • Balancing multiple objectives and conflicts (correct)
  • Ensuring effective monitoring and accountability
  • Adhering to higher ESG standards
  • Which group owns equity (stock) in a corporation?

    <p>Shareholders</p> Signup and view all the answers

    What are the explicit objectives of ESG factors?

    <p>Considering all stakeholders' interests</p> Signup and view all the answers

    According to the traditional framework in corporate governance, who elects the board of directors?

    <p>Shareholders</p> Signup and view all the answers

    What is the main focus of managers in the traditional framework of corporate governance?

    <p>Maximizing shareholder value</p> Signup and view all the answers

    What is the main challenge associated with stakeholder theory?

    <p>Balancing multiple objectives and conflicts</p> Signup and view all the answers

    What is the role of shareholders in a corporation?

    <p>Electing the board of directors</p> Signup and view all the answers

    What are the explicit objectives of ESG factors?

    <p>Considering all stakeholders' interests</p> Signup and view all the answers

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