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Scottish political economist Adam Smith didn’t trust situations where the people who provide the money for a business don’t actually manage the company. In The Wealth of Nations, he observed that such managers don’t watch over the investment “with the same anx¬ious vigilance with which the partners in a private [company] frequently watch over their own.” How do corporations attempt to protect the interests of stockholders? Do you think that those safeguards are effective? Give examples to support your view.

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