Question

In a corporation, the interests of the owners, who seek to maximize profits, may differ from the interests of the managers, who seek prestige and high income. this divergence would be considered:

Answer 1

On an individual level, I think this kind of divergence can not be divergence in some way, cause the maximize of the profits may result the prestige and high income for the managers, if the manager want to have the high income he must considered the profits of the corporation, therefore, the owner and the manager are ralated to each other, they are in the same boat.

Answer 2

The answer is; a principal-agent problem.

Hope this helped! :)