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:

Oligopolistic

Pertaining to an oligopoly, describing a market dominated by a small number of firms, leading to strategic behaviors among them.

Gas Stations

Facilities that sell fuel and engine lubricants for motor vehicles. Some may also offer convenience store goods and car wash services.

Small Town

A community with a small population, typically smaller than a city, and characterized by a close-knit society with a localized economy.

Duopoly

An oligopoly consisting of only two firms.