Ownership value derived from the ability to control the type of output produced gives rise to high:

Question

Quizplus · Accepted Answer

Ownership value derived from control over output leads to high inside ownership, as management and insiders have a vested interest in shaping the output to maximize their own benefits. This is because inside ownership provides a significant incentive for managers to act in the best interests of shareholders, as they have a direct stake in the firm's success. Therefore, inside ownership is a common way to align the interests of management with those of shareholders.

Ownership Value Derived from the Ability to Control the Type