Stakeholder Theory Asserts That While There Are Other Stakeholders in Business

question 146

True/False

Stakeholder theory asserts that while there are other stakeholders in business, the most important is still the shareholder and their needs should take precedence of the needs of other stakeholders.

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Definitions:

Incentives

Benefits or rewards offered to encourage specific actions or behaviors.

Divisional Conflict

Conflicts that arise within sections of an organization, often due to differing objectives, resources, or priorities.

Information Flow

The transfer and communication of data and knowledge among people, systems, or organizations, facilitating decision-making and coordination.

Authority

The power or right to give orders, make decisions, and enforce obedience.