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It is impossible to arrange the perfect contract', between managers (agents) and shareholders of a business because decisions by the managers (agents) affect their own

It is impossible to arrange the perfect contract', between managers (agents) and shareholders of a business because decisions by the managers (agents) affect their own personal interests as well as the interests of the owners. Managers will give priority to their personal interests over those of the shareholders. With reference to the agency theory, discuss this perceived conflict of interests.

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