According to agency theory, which of the following is NOT a fundamental difference between owners and managers?
A) Owners are more focused on minimizing costs than are managers.
B) Owners are more inclined to accept risk than are managers.
C) Owners focus more on short-run profitability than do managers.
D) Managers are more inclined than owners to spend resources on activities that are not essential to organizational profitability.
E) Managers serve as agents who represent owners' interests.
Correct Answer:
Verified
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