Read the article: Journal of Applied Corporate Finance by James Bri...

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Read the article: Journal of Applied Corporate Finance by James Brickley, Clifford Smith, and Jerold Zimmerman, University of Roch
1.) What are the three aspects of corporate organization according to the article? Which one is in your view most important to the success of the firm? Explain.
2. Explain in which industries franchising has established itself as a more successful form of business organization (compared to small independently owned companies) and why.

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In the article by Brickley, Smith & Zimmerman (1995), on “The Economics of Organizational Architecture," the authors discuss various aspects of corporate organization that provide greater insights into the critical nature of sound decision-making strategies and rights in managerial economics. The authors argue that while a competitive environment is likely to drive efficiency in organizations in the long run, naïve experimentation with organization structures and strategies on the short-term could expose the business to an unsettlingly high risk of failure. Brickley, Smith & Zimmerman (1995) thus emphasize the...

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