IS MICROBUSINESS DECISION What incentive conflicts exist in corporations? What mechanisms are used to address the incentive conflicts in corporations?...

THE COURSE IS MICROBUSINESS DECISIONWhat incentive conflicts exist in corporations? What mechanisms are used to address the incentive conflicts in corporations? Why is important to separate decision management and control in publicly traded corporations? Discuss how a well designed governance system achieves this objective. What characteristics do you think are important in evaluating the quality of a corporate board?

Incentive conflict exists between shareholder and manager because of the principal –agent problem. Manager owes fewer shares as compared to shareholders and in this case, theyengage themselves...