Asked by Christy Kurien on Jul 17, 2024
Verified
A stakeholder is:
A) Given to each stockholder when they first purchase their stock.
B) A proxy vote made at a shareholders' meeting.
C) A founding stockholder of the firm.
D) An original creditor of the firm.
E) A person or entity including a stockholder or creditor, who potentially has a claim on the cash flows of the firm.
Stakeholder
An individual, group, or organization that has an interest in the activities and outcomes of a company or project.
Stockholder
An individual or entity that owns one or more shares of stock in a corporation, making them a partial owner of that company.
Creditor
An individual or institution to whom money is owed by a debtor, typically resulting from a provision of goods, services, or loans.
- Grasp the role and impact of stakeholders in corporate governance.
Verified Answer
JS
Jasmyn SaucedoJul 20, 2024
Final Answer :
E
Explanation :
A stakeholder in a firm encompasses a broad range of individuals or entities that have an interest or stake in the business, which includes but is not limited to stockholders and creditors. They are potentially affected by the firm's actions, objectives, and policies. This definition goes beyond just the financial aspects to include anyone who can be impacted by the firm's operations.
Learning Objectives
- Grasp the role and impact of stakeholders in corporate governance.