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Business objectives of owners and managers

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Explain why the business objectives of owners and managers are likely to diverge. How might owners attempt to ensure that managers act in their interests and not in the managers' own interests?

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Explain why the business objectives of owners and managers are likely to diverge. How might owners attempt to ensure that managers act in their interests and not in the manager's own interests?

Business objectives of owners and managers are likely to diverge as they can have their own personal objectives which may not be aligned by the organization. The most important financial goal of the firm is to maximize shareholder wealth as reflected in the market price of the stock. This goal is in conformity with the best long-run interests of ...

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