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The _____ model is founded in classic economic precepts.

a. economic
b. shareholder
c. stakeholder
d. board
e. ISO

1 Answer

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Final answer:

The shareholder model is the correct option that is founded in classic economic precepts. It asserts that managers should act solely in the interests of shareholders, whereas the stakeholder theory argues for balancing the interests of all stakeholders.

Step-by-step explanation:

The given question is related to the models of corporation governance. The correct option that is founded in classic economic precepts is the shareholder model. The shareholder model asserts that a firm's managers should act solely in the interests of the shareholders, who own a portion of the company. In contrast, the stakeholder theory argues for balancing the interests of all stakeholders, which includes employees, customers, communities, and shareholders.

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