For small firms, shareholders and management may be one and the same.But for large companies, separation of ownership and management is:

Question

Quizplus · Accepted Answer

Large companies have a complex management structure and several shareholders. Separation of ownership and management becomes a practical necessity to ensure transparency and accountability in the functioning of the company. It helps to safeguard shareholder interests and prevent abuse of power by management.

For Small Firms, Shareholders and Management May Be One and the Same.But