Encourage the managers of the small firm to take more risk

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Reference no: EM131843202

Why are the owners and managers of a small, privately owned and closely held firm likely to be more risk averse (or at least behave that way) than the owner's (i.e., shareholders) and managers of a large publicly held corporation? Suggest a possible way to encourage the managers of the small firm to take more risk.

Reference no: EM131843202

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