Question: 1. Explain the wedge between control and cash flow rights and discuss its implications. (3 marks) 2. Many companies grant stock or stock options to

1. Explain the wedge between control and cash flow rights and discuss its implications. (3 marks)

2. Many companies grant stock or stock options to managers. Discuss the benefits and possible costs of using this kind of incentive compensation scheme. (3 marks)

Refer to the Petrobras article written by Paulo Sotero available at https://www.britannica.com/event/Petrobras-scandal and then answer the following questions:

3. What happened in Petrobras? (3 marks)

4. Explain how the company's governance may have contributed to the scandal. (3 marks)

5. Explain how Brazil's political culture may have contributed to the scandal. (3 marks)

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