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LOS d: Explain investor activism in relation to corporate governance and discuss the limitations of investor activism.
Q1. Which of the following is least likely to limit active investor effectiveness?
A) Managers may become too focused on short-term performance.
B) Active investors may liquidate their shares.
C) Active investors are strictly monitored as to their performance.
Q2. Which of the following refers to the situation where an active investor does not own the majority of the firm’s shares but persuades other shareholders of her position?
A) The active investor has contingent control.
B) The active investor has formal control.
C) The active investor has real control.
Q3. In which of the following situations would an active investor be the least effective monitor of management? The active investor holds a:
A) large block of illiquid stock.
B) small block of illiquid stock.
C) small block of liquid stock. | 
发表于 2009-3-10 15:37
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