Stakeholder Power

question 36

Multiple Choice

Stakeholder power:

• A) indicates the extent to which stakeholders need immediate attention.
• B) refers to the managers' ability to maximize profits.
• C) refers to the shareholders' ability to influence managers.
• D) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization.
• E) indicates the validity and legitimacy of a stakeholder's interests in the organization.

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Definitions:

Legal Duty

Refers to an obligation imposed by law upon an individual to act or refrain from acting in a certain manner.

Proximately Caused

A legal principle that limits the damages a plaintiff can recover to those which are directly related to the defendant's actions.

Proximate Cause

A legal concept that links a defendant’s conduct with the plaintiff's injury or damage, establishing liability based on the foreseeability of the harm.

Unforeseeable Consequences

Outcomes that could not have been predicted or expected based on the information available at the time of decision or action.