There Are Many Different Stakeholders Found in an Organization

question 100

Multiple Choice

There are many different stakeholders found in an organization. Stakeholders drive business strategies, and depending on the stakeholder's perspective, the business strategy can change. Which of the following is a main concern for shareholders/investors?

• A) Maximize profits
• B) Adhere to regulations/laws
• C) Exceptional customer service
• D) Reliable contracts

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Definitions:

Equity Multiplier

A financial ratio that measures a company's leverage, calculated as total assets divided by total equity.

Year 2

The second year in a given time frame or series, often referring to fiscal or calendar years.

Operating Cycle

The average period of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Total Asset Turnover

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales or revenue by the total assets.