Schemes make managers more responsive to stock holders

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1. In this argument, the definition of the word "friend" seems open for debate. Dailey offers a couple of different definitions of a friend, a traditional definition and a social networking site definition. How are these two similar and how are they different?

2. This argument talks about how habits can be contagious among friends, like smoking ad weight gain. Bailey, however, sees this kind of contagiousness as a good thing because of Facebook. Why?

3. In recent years, top managers have been given large packages of options, giving them the right to buy stock in the firm at a fixed price. Will these compensation schemes make managers more responsive to stock holders? Why, or why not? Are lenders to the firm affected by these compensation schemes?

Reference no: EM132184548

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