Question

2. Distinguish between 'stakeholders' and 'shareholders'.​

Answer 1

Shareholders are always stakeholders in a corporation, but stakeholders are not always shareholders. A shareholder owns part of a public company through shares of stock, while a stakeholder has an interest in the performance of a company for reasons other than stock performance or appreciation.

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Answer 2

Stakeholder

= any person or organization with a direct interest in the activities and performance of a business.

Shareholder

= owners of the business and as a result are entitled to have a share in the profits.