Question

Why we agreed separation of ownership for management works against the objectives if profit maximization?

Answer 1

Explanation:

Profit Satisficing In many firms, there is a separation of ownership and control. ... Therefore managers may create a minimum level of profit to keep the shareholders happy, but then maximise other objectives, such as enjoying work, getting on with other workers.

Answer 2

Explanation:

Profit Satisficing In many firms, there is a separation of ownership and control. ... Therefore managers may create a minimum level of profit to keep the shareholders happy, but then maximise other objectives, such as enjoying work, getting on with other workers.