When professional managers, rather than the owners of a firm, run the firm's operations, situations can arise in which there may be ________.
A) unethical behavior
B) personality disharmonies
C) informational disconnections
D) conflicts of interest

Question

Quizplus · Accepted Answer

When professional managers run a firm's operations, conflicts of interest can arise because the managers' goals may not align with the owners' goals, leading to decisions that benefit the managers at the expense of the owners.

When Professional Managers, Rather Than the Owners of a Firm