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Define “related diversification.”

Consider the controversy that erupted in 2013 about the pay package of Oracle CEO Larry Ellison. (http://money.cnn.com/2013/11/01/technology/enterprise/larry-ellison-pay/). The article emphasizes people’s concerns that CEOs simply make too much money.Four mechanisms of corporate governance (ownership concentration, board of directors, executive compensation and the market for corporate control). Which two mechanisms are most apparent in this article? Elaborate.

THEN :

answer in two sentences for each question bellow :
1. What is a leveraged buyout?

2. What is a functional structure? (Hint: see the PPT on “Structure”).

3. Define “related diversification.” (Hint: see the PPT on Corporate Level Strategy)

4. What is the difference between a “star” and a “cash cow?”

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