Asked by Katelyn Smith on Jun 11, 2024

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Passive investors follow the ________ rule: Either support management or sell the shares.

A) co-determination
B) vicarious liability
C) Wall Street
D) business judgment

Passive Investors

Individuals or entities that invest in a venture but are not actively involved in its day-to-day management.

Wall Street Rule

A principle suggesting that investors should sell shares of firms that adopt unwelcome or undesirable policies instead of seeking to change the management's actions through engagement.

Co-Determination

a system or practice, particularly in some European countries, where workers or their representatives have a role in the management and decision-making processes of a business.

  • Appreciate the ethical considerations and potential conflicts of interest in corporate management decisions.
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Verified Answer

CC
chinaza ChinwubaJun 15, 2024
Final Answer :
C
Explanation :
Passive investors follow the Wall Street rule: Either support management or sell the shares.