Adolph Berle and Gardiner Means argued that widely held corporations will be run inefficiently by professional managers.Their argument is based on:

Question

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Berle and Means argued that widely held corporations would be run inefficiently by managers who do not have a significant ownership stake in the company. These managers may prioritize their own interests or job security over maximizing shareholder value, leading to incentive conflicts between shareholders and managers.

Adolph Berle and Gardiner Means Argued That Widely Held Corporations