Attempt to protect the interests of stockholders

Reference no: EM13322113

Scottish political economist Adam Smith didn’t trust situations where the people who provide the money for a business don’t actually manage the company. In The Wealth of Nations, he observed that such managers don’t watch over the investment “with the same anx¬ious vigilance with which the partners in a private [company] frequently watch over their own.” How do corporations attempt to protect the interests of stockholders? Do you think that those safeguards are effective? Give examples to support your view.

Reference no: EM13322113

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