Answer:
Managers generally have a shorter time horizon than owners; thus, managers do not fully take into account the future long-run profitability of the firm.
Step-by-step explanation:
The option that is missing is actually the correct answer. Many times managers are more worried about short term results since they earn money based on them, while owners are concerned with ling term profitability and wealth creation.
A principal-agent conflict occurs when the agent and the principal have different priorities or interests, and the agent does not fulfill their duties properly. The agent is supposed to act on behalf of the principal's best interests, but sometimes they act on behalf of their own interests.