Passive Investors Follow the ________ Rule: Either Support Management or Sell

question 45

Multiple Choice

Passive investors follow the ________ rule: Either support management or sell the shares.

• A)co-determination
• B)vicarious liability
• C)Wall Street
• D)business judgment

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Definitions:

Solvent

Referring to an entity's ability to meet its financial liabilities through available assets.

Real Rate Of Return

The annual percentage of profit earned on an investment, adjusted for changes in the inflation rate.

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners and entitling them to a portion of the company's profits.

Corporate Bond

A type of debt security issued by a corporation to raise capital, promising to pay back the face value, along with interest, to the bondholders.