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An active role by stockholders in influencing a firm’s management policies is called: A. empowerment. B. reengineering. C. self-managed teams. D. quality circles. E. shareholder activism.

Question

An active role by stockholders in influencing a firm’s management policies is called: A. empowerment. B. reengineering. C. self-managed teams. D. quality circles. E. shareholder activism.

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Solution

The answer is E. Shareholder Activism. This term refers to the way shareholders can influence a corporation's behavior by exercising their rights as owners. These rights include voting on certain issues and proposing changes to the company's operations or management.

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