Sometimes senior managers make decisions based on personal, and not shareholder, interest.

Question

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Senior managers may sometimes prioritize their personal interests over those of the shareholders when making decisions. This is known as agency problem or conflict of interest. Managers are expected to act in the best interest of the shareholders and make decisions that maximize the value of the company. However, personal biases or interests may cloud their judgment and lead them to make decisions that benefit them personally, but not necessarily the company or its stakeholders.

Sometimes Senior Managers Make Decisions Based on Personal, and Not