Discuss the differences between the theo- ries of organizations
Generally, the smaller the corporation, the less active is its board of directors in strategic management.13 In an entrepreneurial venture, for example, the privately held corporation may be 100% owned by the founders—who also manage the company. In this case, there is no need for an active board to protect the interests of the owner- manager shareholders—the interests of the owners and the managers are identical.
FIGURE 2–1 Board of Directors’ Continuum