Advocates of the Stakeholder Concept

question 50

Multiple Choice

Advocates of the stakeholder concept:

• A)argue that an appreciation for stakeholders is fundamental to understanding how to make money.
• B)feel it is necessary to not only recognize the interests of all stakeholders but also to promote the loyalty of other individuals and groups.
• C)believe that shareholders are a principal stakeholder.
• D)believe that responding to stakeholders is simply good business.
• E)All of the above are true statements advocating the stakeholder concept.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or volume of output, such as raw materials and direct labor.

Fixed Costs

Costs that remain constant regardless of the volume of goods or services produced by a business.

Net Income

The total profit of a company after operating expenses, taxes, and all other incomes and expenses have been deducted from total revenue.

Variable Costs

Costs that change in proportion with the level of production or sales volume, such as materials and labor.