•Differentiate between stakeholders and shareholders?

Expert Solution

The differences are discussed as below:

Meaning: Stakeholders refers to the individuals or companies that have an active interest in the company's functioning while shareholders refers to the individuals or companies that are the owner of one or more of the company's shares. The stakeholders are iinterested parties and shareholders are the owners

Company: Every organization or company will have stakeholders; however only the company that is limited by shares can have the shareholders

Focus: Shareholder's focus is on return on investment while stakeholders focus is on the company's performance.

Types: The types of stakeholders are government, suppliers, employees, creditors, and customers. The two types of shareholders are the preference shareholders and the equity shareholders

Roles: The Company’s shareholders are also its stakeholders but stakeholders cannot be company's shareholders

Rahul Sunny answered 1 year ago

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