Stakeholders vs Shareholders

• Who are considered stakeholders in a business?

  Employees, society, suppliers, customers
• What binds stakeholders together?

  They have an interest in business activities
• What is the key distinction between stakeholders and shareholders?

  Stakeholders have interest, shareholders own
• Can shareholders also be stakeholders?

  Yes, shareholders are also stakeholders
• How might a supplier be considered a stakeholder?

  They have an interest in business transactions
• What is the relationship between shareholders and business profits?

  Shareholders benefit directly from profits
• What is a specific relationship of shareholders to a business?

  They are the direct owners of the business
• Who can also be shareholders in a business?

  Employees and managers who own shares
• What happens as a business increases in value for shareholders?

  They benefit directly from the increase
• What are the key differences between stakeholders and shareholders?

  • Stakeholders have an interest in the business
  • Stakeholders do not necessarily own the business
  • Shareholders are the owners of the business
  • Shareholders benefit directly from profits