The Ownership of Major Blocks of Stock by Institutional Investors

question 2

Multiple Choice

The ownership of major blocks of stock by institutional investors have resulted in all of the following EXCEPT

• A)making CEOs more accountable for their performance.
• B)challenges to the decisions of boards.
• C)focusing attention on ineffective boards of directors.
• D)a direct effect on firm performance.

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Definitions:

Strategic Decisions

Choice made by an organization's top management on long-term goals and policies, usually involving resources allocation and efforts to achieve competitive advantage.

Externally Imposed Benchmarks

Standards or measures of performance that are set by external organizations or bodies, which a company must meet or comply with.

Competitive Landscape

The dynamic external environment within which a business operates, characterized by the competition between existing firms, new entrants, and substitutes.

Performance Measurement Systems

Tools and systems used to monitor and assess the performance of an organization against its objectives, often encompassing multiple performance indicators.