Corporations Who Run Their Operations According to the Stakeholder Theory

question 43

Multiple Choice

Corporations who run their operations according to the stakeholder theory of the firm create value by:

• A) Innovating new products.
• B) Increasing their stock price.
• C) Developing their employees' professional skills.
• D) All of the above.

---

Definitions:

Company Performance

An assessment of a company's operations, profitability, and financial health over a specific time period, often evaluated through financial ratios and benchmarks.

External User Needs

The information requirements of individuals or entities outside a company, such as investors, creditors, and regulatory agencies, for making informed decisions.

Profit Margin

A financial ratio that measures the percentage of profit a company generates from its revenues, indicating the efficiency of a company in controlling its costs.

Total Asset Turnover

A financial ratio that measures the efficiency of a company’s use of its assets in generating sales revenue.