Complete Question:
An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's:
Group of answer choices
A. residual owners.
B. shareholders.
C. financiers.
D. provisional partners.
E. stakeholders.
Answer:
E. stakeholders.
Explanation:
An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's stakeholders.
A stakeholder can be defined as an individual or group of people that has an interest or concern in a business firm and usually either affect or be affected by the business.
Generally, the key stakeholders of business firm are its employees, public groups, suppliers, investors, creditors, consumers or customers. The employees working in an organization are key internal stakeholders because they play a significant role, function and have both financial and time-based investments in the operations of the business.
