Question
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. A person or entity with a financial or non-financial interest in a company
Ask by Phillips Floyd. in the United States
Mar 10,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
A stakeholder is a person or entity with an interest in a company, such as shareholders, employees, customers, and suppliers.
Solution
The correct answer is:
**D. A person or entity with a financial or non-financial interest in a company.**
A stakeholder can be anyone who has an interest in the success or failure of a company, including employees, customers, suppliers, and the community, in addition to shareholders.
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Simplify this solution The Deep Dive
Stakeholders come in various forms, including employees, customers, suppliers, and even the community at large. Their interests can influence company policies and decision-making, making them crucial to how businesses operate. Engaging with stakeholders often leads to better outcomes for both the company and the community it serves. In the real world, companies that actively consider stakeholder interests tend to experience higher levels of customer loyalty and employee satisfaction. For example, a company that champions environmental sustainability can enhance its brand reputation while benefiting from loyal customers who value those efforts.
