When managers are owners of the firm, the risk that they will deviate from the organization's stated purpose increases.

Name: When managers are owners of the firm, the risk that they will deviate from the organization's stated purpose increases.
Brand: Quizplus
Rating: 4.7 (28 reviews)

Question

Quizplus · Accepted Answer

When managers are owners of the firm, they are more likely to be motivated to achieve the organization's stated purpose because their personal financial interests are tied to the success of the company. Therefore, the risk of deviation may actually decrease.

When Managers Are Owners of the Firm, the Risk That