Shareholders have become an increasingly powerful and vocal stakeholder group in corporations.FalseTrue
Question
Shareholders have become an increasingly powerful and vocal stakeholder group in corporations.FalseTrue
Solution
The correct answer is: True.
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Over the past few decades, shareholders have become an increasingly powerful and vocal stakeholder group in corporations. This is due in part to changes in the investment landscape, including the rise of institutional investors and activist shareholders.
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Institutional investors, such as pension funds and mutual funds, often hold large stakes in corporations and have the resources to monitor and engage with management. They can use their voting power to influence corporate policies and decisions, and they often advocate for good corporate governance practices.
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Activist shareholders, who buy shares in a company with the intention of influencing its direction, have also become more common. They often push for changes in strategy, governance, or management to increase shareholder value.
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In addition, changes in laws and regulations have given shareholders more rights and opportunities to influence corporations. For example, many jurisdictions now require companies to hold "say on pay" votes, which give shareholders a voice in executive compensation.
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As a result of these trends, corporations are under increasing pressure to listen to their shareholders and take their views into account when making decisions.
Similar Questions
According to stakeholder theory, stakeholders other than shareholders:Group of answer choicesshould be encouraged to become shareholders.are irrelevant, as shareholders own the business.are important as they generally contribute value to an entity.are more important as they may not be able to afford to buy shares, leaving them vulnerable.
What can we be sure of about shareholders?YOUR ANSWERYour AnswerThey are external stakeholders in a business.They are the owners of a company.They are people that have an indirect stake in a business.They are the founders of the business.
Who mentioned below are NOT called Stakeholders of a company? CollaboratorsShareholdersEmployees Competitors
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
What does stakeholder “legitimacy” mean according to the Mitchell Typology of Stakeholders?Group of answer choicesWhen a stakeholder claim is considered to be high priorityThe belief from stakeholders that businesses should be more socially responsibleWhen a stakeholder claim is considered to be urgentThe belief that the actions of a stakeholder are desirable or appropriate within the company’s accepted norms and valuesThe belief that investors will only invest in socially responsible businesses
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