Question

In: Economics

Stakeholders are owners with majority control. True or False?

Stakeholders are owners with majority control.

True or False?

Solutions

Expert Solution

Answer: False

The stakeholders are the individuals who have interest in an organization and hence can influence the company's or organization's activities. The stakeholders' supports are very necessarry to run an organization. The examples of stakeholders are directors of a company, owners or shareholders of a company, employees, etc.

So, the stakeholders are not the owners with majority control. When a stakeholder owns majority i.e., more than 50 percent of a company's shares, she/he is called a majority stakeholder.

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