A stakeholder is:
A) Any person or entity that owns shares of stock of a corporation.
B) Any person or entity that has voting rights based on stock ownership of a corporation.
C) A person who initially started a firm and currently has management control over the cash flows of the firm due to his/her current ownership of company stock.
D) A creditor to whom the firm currently owes money and who consequently has a claim on the cash flows of the firm.
E) Any person or entity who potentially has a claim on the cash flows of the firm.

Question

Quizplus · Accepted Answer

A stakeholder is broadly defined as any person or entity who potentially has a claim on the cash flows of the firm, not just those with stock ownership or direct financial claims. This includes employees, customers, suppliers, and the community, among others.

A Stakeholder Is