
STRATEGIC MANAGEMENT W/CONNECT
3rd Edition
ISBN: 9781260040708
Author: Rothaermel
Publisher: MCG CUSTOM
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Chapter 5, Problem 2ESI
Summary Introduction
To explain: The advantages of accounting and shareholders by leasing rather than owning retail locations.
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QUESTION 2
a.
Differentiate between unitary (single-tier) and two-tier board structures.
(10 marks)
b. Evaluate the structure you think would be more effective in the governance of companies.
(15 marks)
Case Study
The composition and role of boards.
The board of directors is the corporation's governing body. By law, the board is vested with the
authority to manage the corporation's business and affairs, and the board's members have a
fiduciary responsibility to act in the best interests of the corporation and its shareholders. Boards
are thus collegial bodies in the traditional sense that their members share authority and
responsibility, and have both individual and collective accountability.
Boards typically delegate much of their authority to an executive team that carries out the day-to-
day operations of the corporation's business. However, some board duties cannot be delegated,
and boards vary widely in the extent of their involvement in the business. The board's core
functions typically include selecting, monitoring, advising, and compensating the chief executive;
monitoring the company's financial structure and declaring dividends; deciding on major
transactions and changes in…
6. Describe the need for financial reports for the following stakeholders.
a. The Community
b. Creditors
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