Manager can operate in stockholder as well as can operate in own personal interest
Explanation:
A contract is referred to as an agreement that deals with employment as well as sales which is enforced by a law. The typical criterion employed for identifying winning contract is that managers can work in the stockholders interest as well as can work in their personal interest.
When the managers follow the rules and regulation of the law the stockholders do not have any control to implement new ideas to deal with the managerial decision making.
