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

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Quizplus · Accepted Answer

For large companies, separation of ownership and management is a practical necessity as it allows for proper delegation of tasks and decision-making processes. Shareholders do not necessarily have the expertise or time to manage the company on a day-to-day basis, and having professional management can improve the company's performance and competitiveness. Additionally, separation of ownership and management provides a system of checks and balances and can help prevent conflicts of interest between shareholders and management.

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