The public corporation has a key weakness which is

Question

Quizplus · Accepted Answer

The key weakness of a public corporation is the conflicts of interest between managers and shareholders. This is because managers may prioritize their own interests, such as increasing their compensation or job security, over the interests of the shareholders who own the corporation. This can lead to inefficient decision-making and a decrease in shareholder value. While conflicts of interest also exist with bondholders and stakeholders, the question specifically asks for the key weakness, which is the conflict between managers and shareholders.

The Public Corporation Has a Key Weakness Which Is