1. Analyze the three internal governance
mechanisms (ownership concentration, boards of directors, and executive
compensation) and recommend a possible fourth mechanism that would help align
the interests of managerial agents with those of the firm’s owners. Provide
specific examples to support your response.
Use the Internet to research basic approaches to corporate governance outside
of the U.S. (excluding Germany, Japan, and China). Be prepared to discuss use
for question 2
2. From the e-Activity, determine how U.S.-based corporations could incorporate
elements of the corporate governance practices you researched to help top-level
managers make better ethical decisions. Provide specific examples to support
your response.
3 • Corporate governance has become a hot issue in the U.S. over the past two
decades. From your analysis of the case study, determine two possible corporate
governance challenges that might be faced by Best Buy as a result of its rapid
growth and why they could become corporate governance issues.
4 • Make recommendations for how Best Buy can overcome these challenges.
Provide specific examples to support your response.
