What incentive conflicts exist in corporations

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1. What is a corporation? Describe the major characteristics of a large publicly traded corporation.

2. What incentive conflicts exist in corporations?

3. What mechanisms are used to address the incentive conflicts in corporations?

4. What costs do incentive conflicts in corporations generate?

5. Is it optimal to completely eliminate incentive conflicts in corporations through extensive monitoring and bonding activities? For example, is the optimal amount of corporate fraud zero?

6. Do recent corporate scandals suggest that there are serious governance problems in most large corporations?

Reference no: EM13920847

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