How the Pilgrims Financed the Mayflower

Discussion Questions:

1. Discuss the characteristics of the Pilgrims’ relationship with their investors that made it ripe for moral hazard.
2. Which of the investors’ actions could have been attempts to reduce moral hazard?
3. Explain how the investors’ choice to acquire equity rather than debt in the Pilgrims’ venture might have been a solution to moral hazard.
4. Do investors today face the possibility of moral hazard to the same degree as the Pilgrims’ investors did? Why or why not?
5. Reflection the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.