Problem 1. Keeping in mind ethical concerns, describe the factors that contributed to Nortel's failure.
Problem 2. What mechanisms should be enforced to better align managers with the interests of shareholders?
Problem 3. Would you describe the meltdown of Nortel more as a failure of "people" or of "capital market processes"?
Problem 4. Nortel's fate is similar to what happened to WorldCom and Enron in the early 2000s, and to Lehman Brothers, Citigroup, and other banks during the 2008 financial crisis. Why and how does the banking industry commit the same mistake over and over again?
Problem 5. Discuss methods to prioritize the following remedies to stop such recurrences: business education, regulation of accounting/financial markets, regulation of incentives, or regulation of punishment. How did you prioritize these remedies?