which of the following business organisations is likely to experience disagreements between management and shareholders

Assessment: WAEC SSCE - Economics - 2015 (Objective) Subject: Economics

Question 1 Report

which of the following business organisations is likely to experience disagreements between management and shareholders

Answer Details
A joint-stock company is likely to experience disagreements between management and shareholders. This is because a joint-stock company is owned by shareholders who provide the capital for the company's operations but do not have direct control over its management. The management is responsible for making decisions on behalf of the company, and these decisions may not always align with the interests of shareholders. Shareholders may also have different opinions on how the company should be run, leading to disagreements with management. In contrast, in a co-operative society, sole trader, or partnership, the owners and managers are typically the same individuals or a small group of individuals who are closely involved in the day-to-day operations of the business, and thus, there may be less likelihood of disagreements between management and shareholders.

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