Advocates of the Stakeholder Concept

question 49

Multiple Choice

Advocates of the stakeholder concept:

• A) argue that an appreciation for stakeholders is fundamental to understanding how to make money.
• B) believe that responding to stakeholders is simply good business.
• C) feel it is necessary to not only recognize the interests of all stakeholders but also to promote the loyalty of other individuals and groups.
• D) believe that shareholders are a principal stakeholder.
• E) All of the above are true.

Explain the concept of asymmetric information and how it leads to problems like moral hazard and adverse selection.

Identify and describe systematic behavioral mistakes such as overconfidence, availability bias, and brand loyalty despite evidence.

Explain the use of the Borda count and pairwise voting in decision making processes.

Understand the principles of behavioral economics with insights from psychology.

---

Definitions:

Exports

Goods or services produced in one country and sold to another, contributing to a country's economy.

Euro

The official currency of 19 out of the 27 European Union countries, which constitutes the Eurozone.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aimed at fostering economic cooperation and ensuring free movement of goods, services, and people.

Russia

Russia is the largest country in the world by area, spanning Eastern Europe and northern Asia, with a rich history, diverse culture, and significant global political and economic influence.