Which Statement Regarding Stakeholders Is Most Accurate

question 94

Multiple Choice

Which statement 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:

Primary Trend

A long-term movement in stock market prices, typically lasting for a year or more, indicating the general direction of the market.

Mental Accounting

A concept in behavioral finance where individuals classify, interpret, and prioritize money, often leading to irrational decision-making.

Fundamental Risk

The risk associated with inherent operational, financial, and market factors affecting an investment.

Managerial Overconfidence

Managerial Overconfidence describes a bias where managers overestimate their ability to generate positive outcomes, impacting decision-making and corporate strategy.