Shareholders are most likely to discover a conflict with senior managers when

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Shareholders are most likely to discover a conflict with senior managers when they closely track the use of resources by the company. This can include monitoring financial statements, expense reports, and overall performance metrics. When shareholders are actively engaged in monitoring the company's resources, they are more likely to detect any irregularities or conflicts with management. Limited information available to shareholders, few investment opportunities, a large number of shareholders, and limited availability of management talent may not directly lead to a discovery of conflicts with senior managers.

Shareholders Are Most Likely to Discover a Conflict with Senior