The separation of ownership from control explains why ﬁrms aim to maximize proﬁts.

Name: The separation of ownership from control explains why ﬁrms aim to maximize proﬁts.
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The separation of ownership from control primarily explains potential conflicts of interest between shareholders (owners) and managers (controllers), not the inherent aim of firms to maximize profits. This separation can lead to agency problems, where managers may pursue their own interests over those of the shareholders.

The Separation of Ownership from Control Explains Why ﬁRms Aim