Which of the Following Parties Are Considered Stakeholders of a Firm

question 33

Multiple Choice

Which of the following parties are considered stakeholders of a firm?

• A) Employees and the government
• B) Long-term creditors
• C) Government and common stockholders
• D) Common stockholders
• E) Long-term creditors and common stockholders

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Definitions:

Reinvestment Rate Risk

The risk that income from an investment will be reinvested at a lower rate than the original investment.

Time Horizon

The length of time an investor expects to hold an investment before taking money out.

Bond Portfolio Immunization

A strategy to minimize the impact of interest rate fluctuations on the market value of a bond portfolio by matching the portfolio's duration with the investor’s investment horizon.

Price Risk

The risk that the price of a financial asset will fluctuate, affecting the profit or loss of an investment.