Topic
The Beneficiaries of a Corporation
Instructions
What is meant by the statement that ownership is separated from managerial control in the corporation? Why does this separation exist? Is it necessary?
Answer preview
Eventually, the beneficiary of a corporation are the owners and most of the times they are ones who operate the business organization in long term instead of some much required short-term plans to benefit the corporation. It is clear that most of the corporations that use the separation of owners and managers tend to flourish more than those who do not consider it. The separation normally exists to safeguard the business organization in long and short-term success and to evade enquiry as a result of CEO behavior.
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