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Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization. In fact, he works for an American carmaker. Therefore Rafael is an external stakeholder for Pierson. a-true b-false

User Brienne
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1 Answer

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Final answer:

The statement in the question is false as Rafael, being part of Pierson's board of directors, is an internal stakeholder, not an external one. Option B.

Step-by-step explanation:

The question asks whether Rafael is an external stakeholder for Pierson Fabrication, Inc. The statement is false. Rafael sits on the board of directors for Pierson Fabrication, Inc., which classifies him as an internal stakeholder.

Internal stakeholders are individuals or groups within a business (like directors, employees, or owners), whereas external stakeholders are those outside of a business (such as suppliers, the community, or government entities).

Since Rafael is part of the governance of the company, despite not being part of the executive leadership and working for another company, he remains an internal stakeholder.

Hence, the statement is false. Option B.

User Eightball
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