John Owns Stock in ABC,Inc

question 26

Multiple Choice

John owns stock in ABC,Inc.Mary is an employee of ABC,Inc.D'Shawn uses the products sold by ABC,Inc.Pham and Alexis are on the board of directors of ABC,Inc.Winifred lives in a housing tract adjacent to the ABC,Inc.factory.Which of the following best describes the roles of these individuals as they relate to ABC,Inc.?

• A) Each of these individuals is a stakeholder of ABC,Inc.
• B) John,Mary,Pham,and Alexis are affected by the policies,decisions,and activities of ABC,Inc.,but Winifred and D'Shawn are not.
• C) Only Pham and Alexis are stakeholders in ABC,Inc.,because they are on the board of directors.
• D) All but Winifred are stakeholders in ABC,Inc.

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Definitions:

Fixed Proportions

A production process where inputs are used in strict, unchangeable ratios.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Demand Curve

A graph displaying the relationship between the price of something and the quantity demanded at those prices.

Labor Productivity

Labor productivity measures the output of goods and services per unit of labor input, indicating the efficiency and effectiveness of the workforce.