Please read chapter 10 and answer questions. 

1. Name and describe two problems caused by agency relationships in organizations.

2.Name 2 methods used to keep management (agents) from acting purely in their own self-interests.

3.Name a company that you feel has an ineffective board of directors.  Why do you feel that way?  What could the board do to improve your perception of them?

4.One example of agency theory is product diversification.   What is agency theory?  How could diversification lead to conflicts of interest between the company and the execs hired to take care of the company?



Source link