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Determine a firm direction and control

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Reference no: EM131100835

Corporate governance is a relationship among shareholders and is used to determine a firm's direction and control its performance. To summarize what you have learned in this chapter, please answer the following questions:

Why is governance necessary to control managers' decisions?

What is meant by the statement that ownership is separated from managerial control in the corporation? Why does this separation exist?

How is each of the three internal governance mechanisms - ownership concentration, boards of directors and executive compensation - used to align the interests of managerial agents with those of the firm's owners?

Your paper should be 1-2 pages in length.

Reference no: EM131100835

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