1) Briefly describe the use of stock options as a form of compensation plan. What are some potential problems with stock options as a form of compensation? 2) Briefly explain how regulatory agencies and legal systems affect corporate governance 3) Suppose your company is very successful and you cash out most of your stock and turn the company over to an elected board of directors. Neither you nor any other stockholders own a controlling interest (this is the situation at most public companies) List six potential managerial behaviors that can harm a firm's value? 4) What is block ownership? How does it affect corporate governance?