A stakeholder is:
A) Given to each stockholder when they first purchase their stock.
B) A proxy vote made at a shareholders' meeting.
C) A founding stockholder of the firm.
D) An original creditor of the firm.
E) A person or entity including a stockholder or creditor, who potentially has a claim on the cash flows of the firm.

Question

Quizplus · Accepted Answer

A stakeholder in a firm encompasses a broad range of individuals or entities that have an interest or stake in the business, which includes but is not limited to stockholders and creditors. They are potentially affected by the firm's actions, objectives, and policies. This definition goes beyond just the financial aspects to include anyone who can be impacted by the firm's operations.

A Stakeholder Is