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6 February, 22:34

What are some of the problems involved in implementing the goal of maximization of shareholder wealth?

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  1. 7 February, 01:07
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    Answer: Agency problem, where managers and stakeholders don't align in view for the interest of the firm.

    Explanation:

    Managers tend to operate the firm without the interest of the stakeholders in mind and this causes a disconnect. This is called an agency problem and it's observed when the manangers and stakeholders share different interest.
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