Purchase Solution

Interests of the Owners vs Managers

Not what you're looking for?

Ask Custom Question

What are the common differences between the interests of the owners of a firm and the managers who are not owners? What are the implications of these potentially differing interests on the overall competitive performance of the firm?

Please provide detailed answer and references.

Purchase this Solution

Solution Summary

The response provides you a structured explanation of Interests of the Owners of a firm and the Managers. It also gives you the relevant references.

Solution Preview

The common differences between the interests of the owners af a firm and the mangers who are not owners are as follows. The interest of the owners is to maximize shareholder wealth whereas the interest of the managers is to maximize their own wealth. The interest of the owners is to protect shareholder wealth, whereas the interest of the managers is to increase their power and earnings through acquisitions of companies. The interest of the shareholder is to get correct information about the revenues and earnings of the company. The interest of the managers is to present as high figures of revenues and earnings as possible ...

Solution provided by:
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.