Why Is It Important for Businesses to Recognize Secondary Stakeholder

question 50

Multiple Choice

Why is it important for businesses to recognize secondary stakeholder groups?

• A)They are absolutely necessary for the firm's survival.
• B)They include the employees necessary for the firm's success.
• C)They usually have more power than primary stakeholders.
• D)They provide vital resources that companies need.
• E)They have legitimacy and can exert power.

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Definitions:

Payee

A person who receives a payment.

Third-Party Check

A check made out to one recipient and given in payment to another, as with one made out to a patient rather than the medical practice.

Health Insurance Company

A firm that offers plans and policies that cover the costs of medical care, including treatments, surgeries, and sometimes prescription drugs.

Drawer

A sliding storage compartment that is part of a piece of furniture such as a cabinet or desk.