Activist Investors Often Try to Influence a Board to Sell

question 161

Multiple Choice

Activist investors often try to influence a board to sell off a business unit if it does not have a lot of synergy with other business units.To gain enough influence with the board,these investors usually require

• A) a coalition.
• B) intuition.
• C) bounded rationality.
• D) interacting group behavior.
• E) an escalation of commitment.

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Definitions:

Cost-Cutting Strategies

Measures implemented by organizations to reduce expenses and improve financial efficiency without compromising on the quality of products or services.

Informal Element

Aspects of a culture or organization that are not officially codified but influence behavior and interactions.

Perceptions

The process of organizing and interpreting sensory information to make sense of the environment and experiences.

Organizational Behavior

A field of study that investigates the impact of individuals, groups, and structures on behavior within organizations, aiming to improve organizational effectiveness.