How is the problem of ownership and control usually understood?

Question

Quizplus · Accepted Answer

The problem of ownership and control usually refers to the separation of ownership (shareholders who own the corporation) from control (management who run the corporation). This results in a situation where the owners may not be able to effectively monitor or check the actions of the managers, which can lead to conflicts of interest and potential failures in corporate governance. Trade unions and managers may also play a role in this issue, but the main problem is the separation of ownership and control.

How Is the Problem of Ownership and Control Usually Understood