Which of the Following Does Not Explain Why Activist Investors

question 8

Multiple Choice

Which of the following does not explain why activist investors have more power over a firm than individual investors?

• A) Activist investors can buy or sell large numbers of shares at once.
• B) Activist investors can exercise block-voting rights over individual investors.
• C) Activist investors can demand seats on company boards.
• D) Activist investors have more legitimacy than individual investors.

---

Definitions:

Transport Density

A measure of how much weight or volume of cargo is transported over a specific distance, often used in freight and logistics to plan and optimize transport loads.

Wealth of Nations

A seminal book by Adam Smith, which discusses economics, markets, and the division of labor, foundational to classical economics.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his influential book "The Wealth of Nations," which is considered a foundational work in classical economics.

Labor Content

The total amount of work, measured in hours or costs, required to produce a good or service.