Fin515 – problem set – week – 6 – graded – 25/25

Week 6 Problem Set

Answer the following questions and solve the following problems in the space provided. When you are done, save the file in the format flastname_Week_6_Problem_Set.docx (where flastname is your first initial and your last name), and submit it to the appropriate Dropbox.

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Chapter 29 (pages 983-984):

1. What inherent characteristic of corporations creates the need for a system of checks on manager behavior?

 

2. What are some examples of agency problems?

 

3. What are the advantages and disadvantages of the corporate organizational structure?

 

4. What is the role of the board of directors in corporate governance?

 

 

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