Which of the Following Stakeholders Might Not Want a Company

question 15

Multiple Choice

Which of the following stakeholders might not want a company to maximize its long-run profitability and profit growth?

• A) Suppliers
• B) Creditors
• C) Customers
• D) Suppliers and customers
• E) Suppliers and creditors

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Definitions:

Annual Fixed Costs

Expenses that do not change over a year regardless of the level of production or sales.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and equipment costs.

Total Cost

The sum of all costs incurred in the production of goods or services, including fixed and variable costs.