The Shareholder Model and the Stakeholder Model Are Two Techniques

question 35

True/False

The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible.

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Definitions:

Net Income

The total profit of a company, after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Common Stock

Equity ownership in a corporation, offering voting rights and dividends to shareholders, subordinate to preferred stock.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or to pay off debt.