Conflicts of interest often occur between absentee owners and managers.

Question

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Absentee owners are not involved in the day-to-day management of a business, so conflicts of interest can arise between them and the managers who are in charge of making decisions about the company's operations and finances. For example, managers may prioritize their own interests or those of other stakeholders over the owners' interests, or they may make decisions that benefit themselves personally at the expense of the business. This can create tension and distrust between owners and managers, and may ultimately harm the company's performance.

Conflicts of Interest Often Occur Between Absentee Owners and Managers