Question

In context of shareholders, which of the following statements are true?

Options

• Shareholders are one type of stakeholders

• Shareholders do not charge interest from the business

• Shareholders do not have any interest in the business

• Shareholders supply raw materials

Answer 1

Shareholders are one type of stakeholders and Shareholders do not charge interest from the business

Explanation:

1. Shareholders are a type of stakeholder as they have a vested interest in the company's performance.
2. Shareholders invest in the business and earn returns through dividends and capital gains, not by charging interest.
3. Incorrect, as shareholders have a significant interest in the business.
4. Incorrect, as shareholders do not typically supply raw materials; that is the role of suppliers.