Your firm, which specializes in complex electronic products, has grown rapidly and you are now incorporating. Even after incorporation, a large percentage of the stock will be held by the founders, including you. Your colleague recommends a large
corporate board made up exclusively of outsiders. She is very concerned about the sensationalized corporate scandals in recent years. Do you agree with her recommendation? Explain.
Small boards can be more efficient than larger ones. See Yermack, D., 1996, "Higher market valuations of companies with a small board of directors," Journal of Financial Economics 40(2), 185-211 and Gillette, A. B., T. H. Noe, and M. J. Rebello, 2003, "Corporate board composition, protocols, and voting behavior: Experimental evidence," Journal of Finance 58(5), 1997-2032 . The optimal board size depends on the characteristics of the firm and one size does not fit all.
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A clean-up crew is stationed at facility D and wants to take the shortest route to each site. They usually clean up facilities C, E, A and F on the same day and therefore want the shortest route from D to each facility
Recommend a route for the crew to leave from D, clean up each facility one after the other, and return to facility D. (Assume all paths are accessible.)
The sources of venture capital funding have
A) shifted from wealthy individuals to pension funds and corporations. B) shifted from pension funds and corporations to wealthy individuals. C) decreased since 1990. D) done none of the above.