Final answer:
Entities outside the organization with a direct or indirect interest in the firm are called stakeholders. Shareholders, who are individuals owning shares of stock, are a specific type of stakeholder.
Step-by-step explanation:
Entities outside the organization with a direct or indirect interest in the firm, such as stockholders, financial institutions, and government agencies, are called stakeholders.
Stakeholders play a crucial role in the success and operations of a firm. Shareholders, who are individuals owning shares of stock in a company, are a specific type of stakeholder. They invest capital in the company and expect a return on their investment when the company is profitable.
Other stakeholders can include employees, customers, communities, and government agencies. They are affected by the activities of the firm and have an indirect interest in its performance and operations.