Upper-level universities (offering only junior, senior, and graduate programs) have been developed in the last ten years and are relatively small in size. The faculty and administration have been drawn from traditional university experiences. This paper examines two characteristics commonly held by all universities: the practice of university governance and the concept of faculty tenure. While it is conceded that governance truly rests in the Board of Regents, disagreement occurs in the discussion of the formalized process of governance. An examination of the basis of faculty tenure shows that it is awarded in recognition of promising scholarship, teaching, and research and designed to allow the scholar to proceed with his investigation without being fettered with concerns arising from loss of job and salary unless unusual charges could be established against him. Upper-level institutions have an opportunity to practice general governance, blurring distinction between faculty and administration. Administrative activities can be justified as tenurable for faculty. (JMF)