Question

Stakeholders include ________.

1) shareholders
2) employees
3) suppliers
4) governments
5) All of the answers are correct.

Answer 1

Stakeholders encompass shareholders, employees, suppliers, governments, and all who are affected by a company's operations. They have a wider scope of interest in the company's activities compared to shareholders, who focus on monetary returns.

Step-by-step explanation:

Stakeholders include a variety of individuals and entities with an interest in the operations of a business. Stakeholders can be defined as those who may be affected by or have an interest in the company's activities. This broad group extends beyond just the investors to include shareholders, employees, suppliers, governments, customers, local communities, and other parties that interact with the business. In contrast to shareholders, who are concerned primarily with the return on their investments, the stakeholder concept encompasses a wider range of interests. The stakeholder theory advocates for balancing these various interests rather than focusing solely on the maximization of shareholder wealth.