1. The board of directors oversees the managers of a public corporation to ensure that the company is operated in the best interests of shareholders. Which of the following is the board of directors LEAST likely to have control over?
a. Threat of a takeover by another company operating in the industry.
b. Providing management with bonuses based on company performance.
c. Withholding (or decreasing) management compensation when the company under-performs.
d. Awarding performance shares or stock options to management.
e. Relieving management of their duties (firing) if they make decisions that hurt the company and shareholders.
2. Netflix has been disruptive to more than one market. Select the market in which you think it has been least disruptive. Do outside research and justify your choice.
a) Video Rental business
b) Home internet service
c) Broadcast and cable TV service
d) Original video series production