Discuss how the three internal governance mechanisms are used to align the interests of managerial agents with those of the firm’s owners. Why is this so critical in today’s business climate where the ethics practiced by firms are constantly being scrutinized?
. To prevent Enron’s scandal again, firms need to improve their governance mechanism. Discuss two(2) ways to enhance the effectiveness of the governance mechanisms.
Video case on Enron Scandal’s Scandal Answer the questions below after watching the video documentary. 1. The CEO of Enron was responsible for Enron’s scandal. Discuss motivation(s) of the CEO’s engagement in earnings manipulations based on ‘Agency relationship‘ 2. To prevent Enron’s scandal again, firms need to improve their governance mechanism. Discuss two(2) ways to […]