Question

The possibility that management of the corporation may not be pursuing the same goals as the same goals as those of stockholders under the________.

Answer 1

Agency conflict

Step-by-step explanation:

Managers are agents in every corporation. Agency conflict is a situation where management of the corporation do not pursue same goals as those of the company stockholders (Shareholders). Wealth maximization is the key goal of every stockholder; whereas, business performance management is a major goal for managers. Hence, issues relating to control might lead to agency conflict.