1.The answer is B.
Agency theory suggests that managers will look after the performance of the company if doing so serves their own interests : hence performance incentives and rewards. Stewardship theory views the managers as stewards of the assets of the firm. Stakeholder theory argues that managers have a duty of care to a range of organisational shareholders.
Ways in : You could have ruled out Option C as irrelevant, and then worked on the implications of stewardship and agency.
2.The answer is C
Rationale : The objective of corporate governance is overall performance, enhanced by good supervision and management, within best practice guidelines. Business is to be conducted in a way that is both ethical and effective from the perspective of all stakeholders - not just shareholders.
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