Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Sole Proprietorship, Numbered Company, Debenture

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Loren King

Document Summary

Stakeholders: one who has an interest in a corporation. In short, internal stakeholders are those who have either a direct or indirect role in governing the corporation and determining its mission and how it will be achieved. Shareholders are those persons who have invested in the corporation by buying shares in return for a potential share of the corporate profits and other benefits. They do not have the direct authority to manage the corporation. However, they do have the power to elect the board of directors and therefore can have a strong influence on the direction of the company. The board of directors is charged with management functions and is answerable to the shareholders since, should it perform poorly, the board runs the risk of being voted out of office. The board of directors can hire officers to help them.