Which of the Following May Be a Valid Criticism of Activist

question 8

Multiple Choice

Which of the following may be a valid criticism of activist hedge funds?

• A)May cause target firms to be too short-term oriented
• B)Tend to reduce target financial performance
• C)Often fail to yield positive returns for investors
• D)All of the above
• E)None of the above

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Definitions:

Auto Workers

Employees in the automotive industry who are involved in the manufacturing, designing, and maintenance of vehicles.

Marginal Revenue Product

The supplementary revenue created by the addition of one unit of a production input.

Product Price

The amount of money charged for a product or service, determined by cost, demand, and supply factors.

Labor

The exertion of both mental and physical capabilities towards the creation of products and services.