Question

How are lenders and creditors viewed as stakeholders in an organization?

A) Their influence is minimal due to their small numbers
B) They are often taken for granted
C) Their influence is significant due to their large numbers
D) They hold the highest power over corporations

Answer 1

Lenders and creditors are viewed as stakeholders in an organization because they provide capital through loans and credit. They have a significant influence on the company's operations and expect to be repaid with interest on their loans. Their involvement can affect the company's financial stability and reputation.

Step-by-step explanation:

Lenders and creditors are viewed as stakeholders in an organization because they have a financial interest in the company. They provide capital to the organization through loans and credit, which helps the company operate and grow. As stakeholders, lenders and creditors have a significant influence on the company's operations and decisions.

They expect to be repaid with interest on their loans or credit, and their involvement can affect the company's financial stability and reputation.