Active Managers

question 43

Multiple Choice

Active managers:

• A) generate lower expenses for their shareholders than passive managers.
• B) trade more frequently than passive managers
• C) always use trading rules to decide when to buy and sell stocks.
• D) all of the above.

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Definitions:

Cost Leadership Strategy

A business approach aimed at becoming the lowest-cost producer in an industry to gain a competitive edge.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, due to its unique capabilities, resources, or position.

Strategic Planning Pitfall

A potential mistake or oversight in the strategic planning process that can undermine its effectiveness or lead to failure.

Failures of Substance

Significant shortcomings or mistakes that impact the performance or credibility of an entity.