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In most large corporations, ownership and management are separated. What are the main implications of this separation?

Problem 1-6: In most large corporations, ownership and management are separated. What are the main implications of this separation?
Problem 1-8: We can imagine the financial manager doing several things on behalf of the firm’s stockholders. For example, the manager might:
a. Make shareholders as wealthy as possible by investing in real assets.
b. Modify the firm’s investment plan to help shareholders achieve a particular time pattern of consumption.
c. Choose high- or low-risk assets to match shareholders’ risk preferences.
d. Help balance shareholders’ checkbooks.

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