Hi,
The examiners report to this question says
"A director will probably have only one principal employer and will, therefore, be motivated more by total risk".
I understand that a director cannot diversify their portfolio like a shareholder can and are therefore exposed to the specific risks of the project more. But I am unsure what this sentence means.
The examiners report to this question says
"A director will probably have only one principal employer and will, therefore, be motivated more by total risk".
I understand that a director cannot diversify their portfolio like a shareholder can and are therefore exposed to the specific risks of the project more. But I am unsure what this sentence means.