Which of the Following Is the Most Accurate Characterization of Stakeholder

question 78

Multiple Choice

Which of the following is the most accurate characterization of stakeholder theory?

• A) an approach to understanding a firm as embedded in a network of internal and external constituencies that each make contributions and expect consideration in return
• B) an approach to understanding a firm as being in a highly competitive industry, which requires the use of effective market capitalization to gain a competitive advantage
• C) an approach to understanding a firm, which involves balancing tangible assets and intangible assets to achieve high accounting profitability
• D) an approach to understanding a firm, which involves balancing multiple internal and external performance metrics in order to gain a competitive advantage

---

Definitions:

Divergent Thinking

A cognitive technique or process designed for eliciting original ideas by investigating various feasible options.

Intellectual Disability

A term for varying degrees of cognitive impairment that affect intellectual functions and adaptive behavior.

Factor Analyzed

A statistical technique employed to discover fundamental factors or elements that clarify the correlation patterns among a group of observable variables.

Content Validity

Refers to the extent to which a test accurately measures or reflects the specific content of what it is supposed to assess.