A stakeholder is any person or entity other than a shareholder or creditor who potentially has a claim on the cash flows of the firm. This includes employees, customers, suppliers, the government, and the community at large. Stakeholders can have a significant impact on the success or failure of a business, and it is important for companies to consider their interests when making decisions.

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A Stakeholder Is

Question 12

Multiple Choice

A stakeholder is:

A) any person or entity that owns shares of a corporation.
B) any person or entity that has voting rights based on share 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 equity.
D) 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 other than a shareholder or creditor who potentially has a claim on the cash flows of the firm.

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