Practice question · True or false
Under the stakeholder model, managers should weigh the interests of employees, creditors, and the community alongside shareholders.
Hints
- Ask whose interests this model says count.
- The contrast is with the view that owners come first.
Show the answer
True
Why
That is the model’s defining claim, in contrast with the shareholder-primacy view; most modern governance codes blend elements of both.
Practise Corporate Governance
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