1. Explain why ownership has been largely separated from managerial control in the corporation.

2. Define an agency relationship and managerial opportunism and describe their strategic implications

3. Explain how three internal governance mechanisms—ownership concentration, the board of directors, and executive compensation—are used to monitor and control managerial decisions.

4. Discuss the types of compensation executives receive and their effects on strategic decisions.

5. Describe how the external corporate governance mechanism—the market for corporate control—acts as a restraint on top-level managers’ strategic decisions.

6. Discuss the use of corporate governance in international settings, especially in German, Japan, and China.

7. Describe how corporate governance fosters ethical strategic decisions and the importance of such behaviors on the part of top level executives?