Problems that allegedly stem from separation of ownership

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A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all the executive decisions. Under the agreement you hold 30% of the firms stock and your friend holds 70%. Why should you ever put yourself into a position where your friend's decisions will carry the day, whether you agree with her or not? What does this tell you about problems that allegedly stem from separation of ownership and control?

Reference no: EM13190344

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