Question

Which of the following parties are considered stakeholders of a firm?

I. employee
II. long-term creditor
III. government
IV. common stockholder
A. I only
B. IV only
C. I and III only
D. II and IV only
E. II, III, and IV only

Answer 1

Stakeholders of a firm include employees, long-term creditors, government, and common stockholders.

Step-by-step explanation:

The stakeholders of a firm include employees, long-term creditors, government, and common stockholders. Employees have a stake in the firm because they are directly affected by its operations and can contribute to its success. Long-term creditors provide capital to the firm and have a stake in ensuring that the firm remains solvent and able to repay its debts. Government has an interest in regulating and monitoring firms to ensure compliance with laws and protect the interests of the public. Common stockholders are individuals who own shares of the company and have a financial stake in its performance.