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According to Stout, what is wrong the principal-agent model that underlies the shareholder primacy theory?
Group of answer choices
A. Shareholders do not own corporations, they are not sole residual claimants, and they cannot control corporate behavior.
B. Shareholders literally own corporations in which they own shares
C. Shareholders are sole residual claimants
D. Shareholders can control the behavior of the corporation (via boards of directors and managers)
Answer & Explanation
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