There Are Many Different Stakeholders Found in an Organization

question 100

Multiple Choice

There are many different stakeholders found in an organization. Stakeholders drive business strategies, and depending on the stakeholder's perspective, the business strategy can change. Which of the following is a main concern for shareholders/investors?

• A) Maximize profits
• B) Adhere to regulations/laws
• C) Exceptional customer service
• D) Reliable contracts

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Definitions:

Noncumulative

A term often used in the context of preferred stock dividends that indicates dividends not paid in one period do not need to be paid in future periods.

Nonparticipating

Refers to an insurance policy, financial instrument, or other contracts that do not entitle the holder to share in the profits or surplus of the issuer.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.