Who do you think the stakeholders might be and why? INCOME STATEMENT

Expert Solution

EXPLANATION --- Stakeholders as the name itself suggests that all those persons or entities holding some kind of stake. Stakeholder is actually a person or party who have interest or concern in something mainly a business of somekind.

For example for a Public Limited company stakeholders can be Creditors , debtors , management , shareholders , government , financiers ,employees etc all those persons who holds interest in the company or has some kind of stake in the company are termed as stakeholders for a company.

Stakeholders of a company can get affected in short run or in long run any actions taken by company , its policies and objectives.

For example --- A investor or shareholder of company is another stakeholder to the company. He/she may wants the company to grow in long run to gain dvidends and maximizes his wealth in the company. However a creditor would want to see coming his money back so he must be holding an interest in proper cashflows of the company.

So we can say that every stakeholder is different and holds different kind of interests in the company.

ekkarill92 answered 1 year ago

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