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.

Question

Quizplus · Accepted Answer

Activist investors often work together with other shareholders to form a coalition. This gives them a stronger voice and more influence with the board. Therefore, a coalition is usually required for activist investors to have enough influence to push for a sale of a business unit. Intuition, bounded rationality, interacting group behavior, and escalation of commitment are not necessarily relevant factors in this context.

Activist Investors Often Try to Influence a Board to Sell