What is the difference between a stakeholder and a shareholder?Multiple ChoiceShareholders help share at some level in the business, whereas stakeholders have only a stake in the business.Shareholders have ownership in the business, whereas stakeholders have only a vested interested.There is no difference, because they are the same.None of these answers are correct.Stakeholders have ownership in the business, whereas shareholders have only a vested interested.
Question
What is the difference between a stakeholder and a shareholder?Multiple ChoiceShareholders help share at some level in the business, whereas stakeholders have only a stake in the business.Shareholders have ownership in the business, whereas stakeholders have only a vested interested.There is no difference, because they are the same.None of these answers are correct.Stakeholders have ownership in the business, whereas shareholders have only a vested interested.
Solution 1
The correct answer is: Shareholders have ownership in the business, whereas stakeholders have only a vested interested.
Shareholders are individuals or entities that legally own one or more shares of stock in a public or private corporation. They own part of the company and have a claim on part of the company's assets and earnings.
On the other hand, stakeholders are individuals, groups, or organizations that are affected by and have an interest or stake in a particular organization or issue. This can include employees, customers, suppliers, creditors, the local community, and even the government. They may not own part of the company, but they have a vested interest in the actions and performance of the company.
Solution 2
The correct answer is: Shareholders have ownership in the business, whereas stakeholders have only a vested interested.
Shareholders are individuals or entities that legally own shares of stock in a corporation. They have a financial interest in the profitability of the corporation because they can make money if the corporation is successful and lose money if the corporation is not successful.
On the other hand, stakeholders are individuals or entities that have an interest in the success of a company but do not own shares in the company. This could include employees, customers, suppliers, and even the community in which the company operates. They may be affected by the company's actions and decisions but do not have a direct financial stake in the company's profitability.
Similar Questions
Are shareholders stakeholders?Multiple Choiceyes, but only shareholders who control at least 10 percent of the businessyes, but only shareholders who control at least 25 percent of the businessyes, but only shareholders who control more than 50 percent of the businessyesno
Why should a business be concerned with stakeholders?Multiple ChoiceStakeholders represent a very large, broad group of people who stand to gain or lose by the actions of the business.Businesses should not have to worry about stakeholders very much, because they do not own the business.Stakeholders represent the competition of the business.None of these answers are correct.Stakeholders control the board of directors of the business
According to stakeholder theory, stakeholders other than shareholders:Group of answer choicesare more important as they may not be able to afford to buy shares, leaving them vulnerable.should be encouraged to become shareholders.are irrelevant, as shareholders own the business.are important as they generally contribute value to an entity.
An employee’s family is best described as which type of stakeholder:Group of answer choicesPrimary stakeholderExternal stakeholderSecondary stakeholderInternal stakeholderIt is not a stakeholder
Explain one difference between the shareholder concept and the stakeholder concept.[3]
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