Which one of the following is a source of conflict between owners and managers?
A)Managers are often reluctant to increase the size of the firm.
B)Owners are reluctant to lay off the manager and want to empire-build.
C)Managers are reluctant to lay off their friends and want to empire-build.
D)Owners are reluctant to lay off their friends and want to empire-build.

Question

Quizplus · Accepted Answer

Managers may have personal relationships with their employees and may also seek to increase the size and scope of the company (empire-building) for their own prestige or power, even if it's not in the best interest of the owners or shareholders. This can lead to conflicts between managers' and owners' interests.

Which One of the Following Is a Source of Conflict