Under the expense preference behaviour theory, managers prefer to maximize the proﬁts of the ﬁrm.

Name: Under the expense preference behaviour theory, managers prefer to maximize the proﬁts of the ﬁrm.
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The expense preference behavior theory suggests that managers, especially in firms where they do not hold significant ownership, might prioritize increasing their personal utility through higher expenses (like on staff, perks, or office size) that do not necessarily maximize the firm's profits.

Under the Expense Preference Behaviour Theory, Managers Prefer to Maximize