Question

In: Accounting

The following groups are stakeholders of a public company:I) shareholders; II) the government; III) suppliers; IV)...

The following groups are stakeholders of a public company:I) shareholders; II) the government; III) suppliers; IV) employees; V) bondholders; VI) management Select one:

a. I, II, III, IV, V, and VI

b. I and II only c. I, II, III, and IV only

d. I, II, and III only

Solutions

Expert Solution

Option A I, II, III, IV, V, and VI is correct
Explanation:
A stakeholder is any person, group or any other kind of organization that has an interest in the activities of a business concern.
For a Public company, shareholders; the government; suppliers; employees;bondholders; management, all have interest in the activites of corporation.
For example shareholders will be interested to know about the performance of the corporation to evaluate the growth prospects of corporation
Similarly Government will be interested to know about the compliance of laws and regulations in the corporation as well as profiatbility for collection of taxes.
Suppliers will be interested to know about liquidity of corporation.
Employees will be interested to know about their role and responsibility in the corporation.
Bondholders will be concerned about liquidity to ensure their borrowing are returned on due date.
Management would be interested in the activities to evaluate the performance and frame policies to achieve goals.

ekkarill92 answered 2 years ago
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