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Shareholders and Management
There is near separation of ownership and management of the firm. Landlord employs professionals as managers who such have technical skills. Managers must take actions that are not in the greatest interest of shareholders. This is generally so whenever managers are not owners of the firm that is they don't have any shareholding. The task of the managers will be in conflict along with the interest of the landholders. The task of the managers is in conflict along with the interest of shareholders will be caused via:
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#The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.
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