Which one of the following is a source of conflict between owners and managers?
A)Managers and owners are both highly risk-averse.
B)Managers and owners are both risk-takers.
C)Managers are more risk-averse whereas owners are not.
D)Managers are less risk-averse whereas owners are not.

Question

Quizplus · Accepted Answer

Managers are typically more risk-averse because they have a responsibility to protect the interests of the company and its stakeholders. However, owners may be willing to take on more risks in order to generate high returns or achieve other goals. This divergence in risk tolerance can create conflict between owners and managers, particularly if managers are hesitant to implement risky strategies that owners believe are necessary for the company's success.

Which One of the Following Is a Source of Conflict