Managers always attempt to maximize the long-run value of their firms' stocks, or the stocks' intrinsic values. This is exactly what stockholders desire. Thus, conflicts between stockholders and managers are not possible.

1. True2. False

Conflicts between stakeholders and managers are common in the corporate world. Those issues take the name of principal-agent problems. The principal-agent problem arises when a principal (shareholder) employs an agent (manager) to perform duties that conflict with the agent's best interest.

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Managers always attempt to maximize the long-run value of their firms' stocks, or the stocks' intrinsic values. This is exactly what stockholders desire. Thus, conflicts between stockholders and managers are not possible. 1. True2. False

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Managers always attempt to maximize the long-run value of their firms' stocks, or the stocks' intrinsic values. This is exactly what stockholders desire. Thus, conflicts between stockholders and managers are not possible.

1. True2. False