An Organization Is Responsible to Many Different Entities

question 5

Multiple Choice

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that

• A) interests of the shareholders are not the only interests that matter.
• B) stakeholders are second in importance to the shareholders.
• C) stakeholders and managers inevitably work at cross-purposes.
• D) all stakeholders receive financial rewards.

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Definitions:

Partitioned

Divided into parts or sections, often used in the context of dividing property among owners or heirs.

Undivided Interests

A share in a property owned by two or more parties where each has an equal right to the entire property rather than a specific portion of it.

Easement

A legal right to use another's land for a specific limited purpose without owning it.

Orally

Expressed in spoken rather than written words; pertaining to verbal communication.