Question 17 (4 points) Question 1 A) A central idea of corporate governance is that the duty of managers is to act in the best interest of shareholders. Using the concepts of conflict of interest and informational asymmetry, explain why managers sometimes do not fulfill their duty towards shareholders. (4 pts) Question 18 (2 points) Question 1 B) Explain the role of a board of directors (BOD) for addressing the issue described in part A of this question. (2 pts) Question 19 (2 points) Question 1 C) What is the concept of 'independence' (in relation to a board of directors) and why is it important for ensuring that a board of directors performs their role adequately? (2 pts) A Question 20 (6 points) Question 20 (6 points) Question 2 A) Identify and explain the three forms of business-government influence. Be sure to explain how ethical issues can arise through each form of influence (6 pts) A Question 21 (3 points) Question 2 B) Explain why globalization makes global governance important (3) A Question 22 (8 points) Question 3 Identify two individual and two situational factors that affect ethical decision making. Explain, using examples, how each affects ethical decision making. 2 Question 23 (5 points) Question 4 In his famous essay, Milton Friedman contended that "The Social Responsibility of Business is to Increase its Profits". Briefly explain his argument. Do you agree or disagree? Explain. Next Page Page 2 of 2