A set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored is known as

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Agency theory is based on the belief that the separation of ownership from management creates a principal-agent relationship where the managers (agents) have the potential to act in their own interests rather than in the interests of the owners (principals). This creates a potential for the wishes of owners to be ignored or not fully realized, which can lead to conflicts and inefficiencies. As a result, agency theory proposes various methods for aligning the interests of agents with those of principals, such as incentives, monitoring, and control mechanisms. Adverse selection principle, moral hazard problem, and self-concept are related concepts, but they do not directly pertain to the issue of organizational control and ownership- management separation.

A Set of Ideas on Organizational Control Based on the Belief