1.Who has residual rights of control over enterprise or firm after all
contractual obligations have been met?
–In past government ministries, planners,
administrators, & ultimately KPSU
exercised control over residuals
2.Who decides what to do with enterprise assets?
–Previously enterprise directors highly
constrained by their ministries and central
planners over asset management
3.Question of factory or enterprise ÒmanagerÓ or Òfactory
directorÓ or Òenterprise directorÓ?
–Taking orders vs. managing
–Òrisk avoidanceÓ vs. Òentrepreneurial
riskÓ
behaviors
4.Who decides what to do with generated income?
–In past ministry officials had major
influence & control
–In past not much of an issue due to Òsoft-budgetÓ
constraints
–Decision making skills & behavior
must generate such income first!