Each stakeholder group has only one source of power in relation to a firm.

Question

Quizplus · Accepted Answer

This statement is false. Each stakeholder group may have multiple sources of power in relation to a firm. For example, shareholders may have the power to elect board members, vote on major company decisions, and sell their shares, among other sources of power. Similarly, employees may have the power to unionize, withhold labor, or provide valuable expertise and labor, among other sources of power.

Each Stakeholder Group Has Only One Source of Power in Relation