The Customers, Employees, Stockholders, Suppliers, Creditors, and Others Who Stand

question 85

Multiple Choice

The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:

• A) market makers.
• B) economic environment.
• C) stakeholders.
• D) social mentors.

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Definitions:

Subscribed

Term used to describe the commitment by investors or customers to purchase or subscribe to a company's stocks, services, or publications.

Preemptive Right

The right of existing shareholders to purchase additional shares of new stock before it is offered to the public to maintain their proportional ownership in the company.

Corporate Policies

Guidelines and principles that dictate various aspects of a company’s operations, including ethical conduct, employee relations, and compliance with laws.

Federal Income Taxes

Taxes levied by the federal government on individuals, corporations, and other entities based on their net income.