In a business organization the splitting of management and ownership into two distinct functions is an example of a(n) A) arbitage.?

In a business organization, the splitting of management and ownership into two distinct functions is an example of a principal-agent relationship. This separation allows owners (shareholders) to delegate decision-making authority to managers, who may have different incentives and goals. This division can lead to agency problems, where the interests of managers may not align with those of the owners. It is not an example of arbitrage, which typically refers to exploiting price differences in different markets.