Which of the Following Is True of Stakeholders

question 20

Multiple Choice

Which of the following is true of stakeholders?

• A) Creditors are examples of internal stakeholders.
• B) Stakeholders do not engage in an exchange relationship with their company.
• C) Stockholders are internal stakeholders that provide an enterprise with risk capital.
• D) The goals of different stakeholder groups within a company are the same and therefore do not lead to any conflicts.
• E) It is mandatory for a company to satisfy the claims of all stakeholders.

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Definitions:

Official Duty

Responsibilities or tasks that are part of a public official's or an officer's role within their professional capacity.

Enforceable

A characteristic of a contract or legal agreement that makes it legally valid and capable of being executed or enforced in a court of law.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Corporations

Legal entities that are separate and distinct from their owners, who are shareholders, and have rights to enter into contracts, own assets, and be liable for debts.