A problem of corporate management is that it may not act in the best interests of the owners.

Name: A problem of corporate management is that it may not act in the best interests of the owners.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Corporate management may prioritize their own interests or the interests of other stakeholders like employees, customers, and suppliers rather than solely focusing on maximizing profits for the owners. This is known as the agency problem in corporate management.

A Problem of Corporate Management Is That It May Not