The principle of finance that "management objectives may differ from owner objectives" implies that owner returns may be enhanced as a result of manager objectives that differ from their own.

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This principle suggests that owners and managers may have different objectives, such as managers seeking to increase their own salaries or job security while owners prioritize maximizing profits. If managers' actions result in higher profits or other benefits for the company, owners may indirectly benefit as well, even if their own objectives were not aligned with those of the managers.

The Principle of Finance That "Management Objectives May Differ from Owner