$($a$)$ Critically discuss the key role that asymmetry of information plays in the agency problem that exists between the management and shareholders of public listed companies.

$(7$ marks$)$

$($b$)$ Critically evaluate whether or not you consider the current UK Corporate Governance framework to be effective in dealing with agency issues.

$(10$ marks$)$

$($c$)$ Critically evaluate whether you consider the use of share option schemes for management is an effective way to cure the agency problem in UK companies in the current economic climate.

$(8$ marks$)$

$($Total: $25$ marks$)$