Firms must provide the right incentives if they are to get managers to focus on long-run value maximization.
- Conflicts arise between managers and debtholders as well as between managers' clients, the shareholders, and those clients. Maximizing shareholder wealth may clash with managers' personal objectives.
A manager is someone who is in charge of monitoring and inspiring workers as well as guiding the development of a company. The person in charge of customer service, who resolves client complaints, and who watches over and manages customer service representatives is an example of a manager.
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