Which of the Following Could Be a Stakeholder of a Corporation

question 5

Multiple Choice

Which of the following could be a stakeholder of a corporation?

• A) employee
• B) customer
• C) local citizen
• D) supplier
• E) all of the above

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Definitions:

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Discount Rate

The interest rate used to discount future cash flows of an investment to present value, reflecting the opportunity cost of capital.

Cost Savings

Reductions in expenditures achieved through methods such as negotiation, effciency improvements, or substitution.

Pretax Return

The profit earned by a business before the deduction of tax expenses.