Wall Street can allocate capital among competing businesses and monitor and discipline managers more effectively than the CEO and headquarters staff of the typical diversified company. Discuss. The word limit is 2,000 words and in the interests of clarity and a level playing field we ask you to respect this convention.

The formal criteria we use to assess all work on this course are as follows:
Addressing the Question: Did you actually answer the question we set? Did you carefully consider and understand what the question is asking you to do?

Quality of Framing: How good was your answer? How clear, comprehensible, reasonable, complete, sophisticated and appropriate is the explanation for it that you give?

Structure/Argument: Was there a clear argument in support of the answer, and was it easy to follow? Or was there a lot of discussion in search of an argument?

Use of Literature: Did your argument include a discussion of the main contributors to the debate, and did you represent them faithfully?

Was there evidence of unsupported assertions and opinion, or did you carefully interpret and discuss the main issues and arguments relevant to the debate?

We will at least expect you to consult, and where appropriate, refer to (cite) the essential and basic readings when considering your answer. A well-researched answer will of course cover a more extensive literature.