According to the agency theory, a manager at a large firm is more likely to exploit organizational resources for his or her own benefit than the owner of a small firm.

Question

Quizplus · Accepted Answer

According to agency theory, the manager-owner conflict is greater in large firms where managers have more power and access to resources, making them more likely to act in their self-interest rather than in the interest of the owners. In contrast, small firm owners have more direct control over company decisions and are more likely to act in the best interest of the firm.

According to the Agency Theory, a Manager at a Large