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Stakeholders are creditors for a corporation.
a)True
b)False

User Neuo
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1 Answer

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Final answer:

Stakeholders include a broad group of individuals or entities with an interest in a company's operations, not just creditors. Creditors, shareholders, employees, and other parties are all stakeholders, but only shareholders invest capital expecting a return on their investment.

Step-by-step explanation:

False. Stakeholders are not necessarily creditors for a corporation. While creditors and shareholders can be stakeholders, the term stakeholders encompasses a broader group that includes anyone who has an interest in the business's operations. This can be employees, customers, suppliers, community members, and others who are affected by the company's actions. Shareholders are investors who own a share of the corporation and have invested capital in it. On the other hand, creditors have lent money to the corporation and are interested in the repayment of their loan rather than the profits of the company.

User Samiran
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