Kate, a business owner, is a proponent of the stakeholder model of business management. Which of the following is a reason she supports this model?

Question

Quizplus · Accepted Answer

Kate supports the stakeholder model because managers spend most of their time interacting with and managing the demands and needs of different stakeholder groups. This model recognizes that a corporation has responsibilities to groups beyond just the shareholders, such as employees, customers, suppliers, and the community, and therefore should consider their needs and concerns in decision-making. Options A and C are incorrect because ownership of the corporation's assets and stock ownership do not necessarily equate to stakeholder status. Option D does not accurately reflect the stakeholder model, as it assumes managers cannot prioritize or manage competing stakeholder demands.

Kate, a Business Owner, Is a Proponent of the Stakeholder