PRC-3 · Chapter 1 · Question 36 of 61
An individual owns 500 shares in a large telecom company but does not participate in daily operations. A local supplier provides the telecom company with cables. According to business definitions, how do these two differ?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The supplier is a stakeholder with a vested interest, while the individual is a shareholder who owns part of the company
Explanation
A stakeholder is anyone who has any type of stake or interest in a business (like a supplier), while a shareholder is someone who legally owns shares in the company.
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