In a corporation,the interests of the owners,who seek to maximize profits,may differ from the interests of the managers,who seek prestige and high income.This divergence would be considered:

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This situation describes a principal-agent problem, in which the owners (or principals) delegate decision-making authority to the managers (or agents), but their interests and incentives may not align perfectly. The managers may prioritize their own salary and status over maximizing profits for the owners, creating a conflict of interest.

In a Corporation,the Interests of the Owners,who Seek to Maximize