2. Company Stakeholders

b.describe a company’s stakeholder groups and compare interests of stakeholder groups;

What are company stakeholders? Stakeholders are individuals or groups with an interest, or stake, in a firm. They are in a reciprocal relationship with the firm, providing the firm with resources and expecting some benefit in return.

What are shareholders? Shareholders provide funds and expect returns. They are the legal owners of a firm and their wealth is directly related to the value of the company. They typically focus on growth in company profitability.

What are creditors? Creditors provide funds and expect repayment and interest. They typically don’t have much control over a firm.

What is the board of directors? A board of directors is a group of individuals that are elected by shareholders to protect shareholder interests, provide strategic direction, and monitor company and management performance.