Which of the following statements about a firm's stakeholders is true?
A) Irrespective of whether the stakeholders are internal or external, the claims and interests of all stakeholders are the same.
B) As the legal owners, employees in a public-stock company have the most legitimate claim on a company's profits.
C) Within stakeholder groups there can be significant variation in the power a stakeholder may exert on a firm.
D) Only internal stakeholders make specific contributions to a firm, which in turn provides different types of benefits to the external stakeholders.

Question

Quizplus · Accepted Answer

Even within stakeholder groups there can be significant variation in the power a stakeholder may exert on the firm. Although both individual and institutional investors can claim the same legitimacy as stockholders, institutional investors have much more power over a firm.

Which of the Following Statements About a Firm's Stakeholders Is