What Name Is Given to the Theory Which Views the Firm

question 33

Multiple Choice

What name is given to the theory which views the firm as a network of contracts which specify the roles played by various participants and their returns, with shareholders entitled to any surplus after other participants have received their contractual return?

• A) Stakeholder theory
• B) Contractual theory
• C) Network theory
• D) Participant- role theory

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Definitions:

Behavioral Change

The process of modifying actions, habits, or behaviors to improve health, well-being, or social interactions.

Contingency Contract

A behavior modification technique where an agreement is made between two parties, outlining specific behaviors and the rewards or consequences that follow from those behaviors.

Reinforcements

In behavioral psychology, stimuli which increase the likelihood of a behavior being repeated, can be positive or negative.

Existential Therapies

A group of psychotherapies emphasizing autonomy, freedom, and the search for meaning, focusing on the human condition as a whole.