One Thing That It Is Important to Remember About Stockholders

question 61

Multiple Choice

One thing that it is important to remember about stockholders is they

• A)are usually regarded as the most critical stakeholder group.
• B)are least interested in the company's profits.
• C)bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
• D)are responsible for using a company's financial, capital, and human resources to increase its performance and thus its stock price.
• E)play an important role, but are not the company's only stakeholder group.

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Definitions:

Ordering Costs

Expenses associated with placing and receiving orders for goods or services, including administrative costs and transportation.

Statistical Safety Stock

The level of extra inventory a company holds to protect against uncertainties in demand or supply.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points relative to its mean.

Service Level

A measure of the quality and performance of a service, often reflecting the degree to which customer expectations are met.