What is an agency relationship? What is managerial opportunism?

1. What is meant by the statement that ownership is separated from managerial control in the corporation? Why does this separation exist?

2. What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make about managers as agents?

What is corporate governance? What factors account for the considerable amount of attention corporate governance receives from several parties, including shareholder activists, business press writers, and academic scholars? Why is governance necessary to control managers’ decisions?

Is it possible that some of the firms mentioned in this MiniCase (e.g., Renault, Nissan, Mazda, Peugot-Citroen, OpelVauxhall) might form a network cooperative strategy? If so, what conditions might influence a decision by these firms to form this particular type of strategy?

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