Stakeholder Theory Refers To

question 25

Multiple Choice

Stakeholder theory refers to:

• A)providing value to all the company's stakeholders;
• B)the directors acting to ensure the best interest of the shareholders are being met;
• C)corporations providing value by combining the key factors of production in a manner that markets cannot;
• D)the directors existing to provide companies with the access to resources that they could not gain through market or management links.

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Definitions:

Variable Cost

A variable cost varies with the level of output or sales, meaning it increases as production increases and decreases as production decreases.

Net 30 Policy

A term indicating that payment is due in full 30 days after the goods are delivered or the service is completed.

Average Inventory

The mean value of all inventory a company holds over a certain period of time, reflecting the average amount of stock available.

Carrying Cost

The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs, among others.