Question
The separation of ownership and managerial control allows shareholders to buy shares, which entitles them to an income (residual return) from the company's operations after
The separation of ownership and managerial control allows shareholders to buy shares, which entitles them to an income (residual return) from the company's operations after paying fees. This, however, requires that the shareholder take the risk that the company's expenses may exceed its income. To manage this investment risk, shareholders maintain a diversified portfolio by investing in several companies to reduce overall risk.
In your opinion, what causes the fact that the owner of the company should not be in the managerial sphere as well? Please explain.
Even if there are concurrent accounts, state examples of success and failure in their management!
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