Which of the following best identifies the main risk of having clear separation between ownership and control?
A) Profit maximisation, where managers adopt long- term views that conflict with the overall needs of the organisation.
B) Managerialism, where managers take decisions in their own interests rather than those of the shareholders.
C) Stakeholder control, where non- investors have excessive influence on management.
D) Agent- principle problems, where the agent may take uncontrolled, unprincipled actions.
Correct Answer:
Verified
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