Which of the Following Statements Is Not True Concerning Secondary

question 32

Multiple Choice

Which of the following statements is not true concerning secondary stakeholders?

• A) Secondary stakeholders are those who have only an indirect stake in the corporation, but who are affected by corporate activities.
• B) Secondary stakeholders may include non-governmental organizations (like Greenpeace) and trade associations.
• C) Because the corporation's relationship with each of these stakeholders is usually not covered by any written or verbal agreement, there is room for misunderstanding.
• D) Aside from competitors, secondary stakeholders are not usually monitored by the corporation in any systematic fashion.
• E) Secondary stakeholders have sufficient bargaining power to directly affect the corporation's activities.

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Definitions:

Money Supply

The complete sum of available financial resources in an economy, including cash, coins, and the funds available in checking and savings accounts, at a particular instant.

Inflationary Tendencies

The general tendencies or trends towards increasing prices and diminishing purchasing power over time within an economy.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and ensuring stability of the financial system.

Recovery

Phase of business cycle during which real GDP increases from trough level to level of previous peak.