Corporate Governance
Who are the providers of the necessary risk capital and the legal owners of public companies- they have a legitimate claim on profit
shareholders
An agreed-upon code of conduct in business, based on societal norms
Business ethics
a model that negates how firms conduct their business with their buyers, suppliers, and partners.
The business Model
Is known as the centerpiece of corporate governance, composed of inside and outside directors who are elected by shareholders.
Board of directors
occurs when information asymmetry increases the likelihood of selecting inferior alternatives.
Adverse selection
Many organizations have this in order to go above the minimum acceptable standard codified in law.
Code of conducts
A novel and useful way to deliver value to customers
Business model innovation
Board members who are generally part of the company's senior management team.
Inside Directors
A system of mechanisms to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally.
Corporate governance
True or False
Law and ethics are synonymous
FALSE
It is explained in the text that unethical behavior is limited to what is known as a few
Bad apples
Board members who are not employees of the firm, but who are frequently senior executives from other firms.
Outside directors
A theory that views the firm as a nexus of legal contracts
Agency theory
True or False
Staying within the law is the minimum acceptable standard
TRUE
What were some popular business models listed in the PowerPoint
- Pay as you go
- Free + Premium services
- Wholesale
- Agency
- Bundling
Defensive provisions to defer hostile takeovers by making the target firm less attractive.
Poison pill
Describes a situation in which information asymmetry increases one party's incentive to take undue risk or shirk responsibilities because the costs accrue to the other party.
Moral Hazard
True or False
A manager's actions can be completely legal but ethically questionable.
TRUE
when a firm decided to implement two models together. For example, Telecommunications companies will use the razor- razor blade and subscription model
Combination
start up companies that are valued at $1 billion or more.
Unicorn Companies