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For smaller firms managed by their owners, profit is likely to dominate almost all decisions. In larger firms, however, managers who make day-to-day decisions usually

"For smaller firms managed by their owners, profit is likely to dominate almost all decisions. In larger firms, however, managers who make day-to-day decisions usually have little contact with the owners. As a result, owners cannot monitor the managers' behaviour on a regular basis. Managers then have some leeway in how they run the firm and can deviate from profit-maximizing behaviour."

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