Which of the Following Statements Regarding Stakeholders Is Most Accurate

question 228

Multiple Choice

Which of the following statements regarding stakeholders is most accurate?

• A)Employees are typically not classified as a stakeholder group because they are internal to the organization.
• B)There are only three types of stakeholders: customers,suppliers,and distributors.
• C)All stakeholders are internal to the organization.
• D)Stakeholders are a varied group; all are in some way affected by how well a company performs.
• E)Stakeholders are only those that have an ownership stake in an organization.

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Definitions:

Injunction

A court order forbidding the continuation of behavior that leads to damages.

Coase Theorem

An economic theory that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient allocation of resources regardless of the initial distribution of property rights.

Liability Rules

Legal principles that dictate how responsibilities and damages are to be handled or compensated in cases of harm or infringement.

Bargaining

The process of negotiating the terms of a transaction or agreement between parties, often involving compromises from the initial positions.