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Stakeholders are creditors for a corporation.

A) True
B) False

User Kinze
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1 Answer

3 votes

Final answer:

False

The statement that stakeholders are creditors for a corporation is false as stakeholders include a variety of individuals and groups with an interest in a company's operations, not just creditors.

Step-by-step explanation:

Stakeholders are not exclusively creditors for a corporation; this statement is false. Stakeholders encompass a broad range of individuals and groups who have a stake in the business's operations, including shareholders, employees, customers, suppliers, community members, and creditors. Shareholders are a subset of stakeholders, as they own shares in the corporation and have a vested interest in its profitability. However, stakeholders cover a much wider spectrum and are not limited to those who hold a financial stake in the company. Creditors, who lend money to the corporation expecting repayment with interest, are indeed stakeholders, but not all stakeholders are creditors.

User Ken Browning
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