Asked by Katelyn Smith on Jun 11, 2024
Verified
Passive investors follow the ________ rule: Either support management or sell the shares.
A) co-determination
B) vicarious liability
C) Wall Street
D) business judgment
Passive Investors
Individuals or entities that invest in a venture but are not actively involved in its day-to-day management.
Wall Street Rule
A principle suggesting that investors should sell shares of firms that adopt unwelcome or undesirable policies instead of seeking to change the management's actions through engagement.
Co-Determination
a system or practice, particularly in some European countries, where workers or their representatives have a role in the management and decision-making processes of a business.
- Appreciate the ethical considerations and potential conflicts of interest in corporate management decisions.
Verified Answer
Learning Objectives
- Appreciate the ethical considerations and potential conflicts of interest in corporate management decisions.
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