Which Type of Investor Causes the Most Problems for CEOs

question 17

Multiple Choice

Which type of investor causes the most problems for CEOs when developing strategic plans?

• A) Shareholders seeking short-term gains
• B) Institutional investors
• C) Shareholders willing to sacrifice short-term gains for long-term income
• D) Employees who own stock
• E) Global investors who do not understand the business

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Definitions:

Positive Profits

Financial gains achieved when the total revenues exceed the total costs of a business.

Long-Run

In economics, the Long-Run is a period during which all input factors of production and costs are variable, allowing for the adjustment of all possible variables.

Short-Run Profits

Profits earned by a firm in a period where at least one factor of production is fixed.

Perfectly Competitive

Refers to a market structure where many firms sell an identical product, and no single firm can influence the market price due to its small market share.