PRIN.OF CORPORATE FINANCE
PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 1, Problem 12PS
Summary Introduction

To discuss: The reasons on why an individual expect managers to act in shareholders’ interests.

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Why might one expect managers to act in shareholders' interests? Give some reasons.
What are the conflicts between shareholders and managers?
The likelihood that managers may place personal goals ahead of corporate goals is called an: a. agency problem b. stakeholder adversity c. strategic advantage d. opportunity cost
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