Question

Which type of stakeholder would most likely derive value through financial benefits, dividends, and a sense of assurance and stability?

a) Shareholders
b) Service provider employees
c) Charitable organizations
d) Partners and suppliers

Answer 1

Shareholders are the type of stakeholder most likely to value financial benefits, dividends, and stability, reflecting the shareholder primacy view that firms should primarily serve the interests of their shareholders.

Step-by-step explanation:

The type of stakeholder who would most likely derive value through financial benefits, dividends, and a sense of assurance and stability is a) Shareholders. Shareholders, also known as stockholders, are individuals who own shares of a corporation. They invest capital and are primarily interested in receiving a return on their investment when the company is profitable. The theory that posits that firms exist primarily to serve the interests of these shareholders is known as shareholder primacy, which mandates that a company's managers act in the best interests of shareholders, often through financial performance that yields dividends and enhances share value, thereby providing financial benefits and creating stability for the shareholders.