A Stakeholder Perspective Argues That While Shareholders Have Important Rights

question 163

True/False

A stakeholder perspective argues that while shareholders have important rights, there are other constituents toward whom a company should demonstrate responsibility and concern.

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Definitions:

Return on Equity

A measure of a corporation's profitability relative to stockholders' equity.

Net Income

Net Income is the total earnings of a company after all expenses and taxes have been deducted from revenue.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, often referred to as net assets or equity.

Cost of Capital

The necessary rate of gain a company must obtain from its investments to keep its market price constant and attract financial support.