CSEET · Business Communication · Common Business Terminologies
In corporate usage, the term 'stakeholder' refers to which of the following?
A stakeholder is any person or group that is affected by, or can affect, the activities of an organisation. This includes owners, employees, customers, suppliers, lenders and the community, so it is broader than shareholders alone.
- AOnly the shareholders who hold equity in the company
- BAny individual or group that is affected by or can affect the activities of an organisationCorrect
- COnly the employees working in the organisation
- DOnly the lenders who have given loans to the organisation
Explanation
A stakeholder is a wider term than shareholder. It covers anyone with an interest in the organisation, such as owners, employees, customers, suppliers, lenders and the community. Limiting it to shareholders alone is wrong because shareholders are only one stakeholder group.
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