Discussion Questions

Discussion Question 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.

• 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

eActivity....... research basic approaches to corporate governance outside of the U.S. (excluding Germany, Japan, and China)

Discussion Question 2

• 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.
• Make recommendations for how Best Buy can overcome these challenges. Provide specific examples to support your response.