ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The board of directors is interested in maximising the profit the business makes and achieving a return for investors. Efficient business operations are therefore a prime focus for them.

Detailed explanation-2: -A shareholder owns shares in a company and thus has a financial interest in its success. Other stakeholders, such as employees or customers, may not have a financial interest but are still vested in the company’s success or failure.

Detailed explanation-3: -What are financial stakeholders? Financial stakeholders are all people interested in business operations. They can either affect or be affected by the business. Stakeholders may include owners, shareholders, employees, government, customers, local communities, and suppliers.

Detailed explanation-4: -A stakeholder has a vested interest in a company and can either affect or be affected by a business’ operations and performance. Typical stakeholders are investors, employees, customers, suppliers, communities, governments, or trade associations.