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its a strategic manegment course u have to write down fast

2. "When the board of Sotheby's discovered that the company had been engaged in price fixing with Christie's, board members moved quickly to oust both the CEO and the chairman of the company. But not all boards perform as well as they should. The board of now-bankrupt energy company Enron approved the company's audited financial statements, which were later discovered to be grossly misleading" Find out the most relevant one agency problem & one relevant solution (governance mechanism) then explain them with pros & cons.

3. "One reason managers prefer more diversification compared to shareholders is the fact that it usually increases the size of a firm and size is positively related to executive compensation. Diversification also increases the complexity of managing a firm and its network of businesses, possibly requiring additional managerial pay because of this complexity" Is it a agency problem or solution (governance mechanism) ? Justify your answer with proper explanation. (

4. The supplier might reason that once it has made the investment, it will become dependent on Ford for business because Ford is the only possible customer for the electrical engine made by this specialized equipment. The supplier realizes that this puts Ford in a strong bargaining position and that Ford might use its buying power to demand lower prices for the engines. Given the risks involved, the supplier declines to make the investment in specialized equipment. Justify it by explaining the most relevant integration with proper explanations

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