Shareholder and Stakeholder Theories Quiz

Who originally proposed the Shareholder Theory?

• Milton Friedman

• Edward Freeman

• Carroll

• Adam Smith

What is the main responsibility of a business according to the Shareholder Theory?

• Increase profits

• Solve social problems

• Ensure employee satisfaction

• Enhance customer service

According to the Shareholder Theory, who are businesses primarily obligated to serve?

• Shareholders

• Employees

• Customers

• Suppliers

What is one of the dangers of focusing solely on shareholder interests?

• Short term strategy and greater risk taking

• Increased employee satisfaction

• Improved customer loyalty

• Enhanced community relations

What does the Stakeholder Theory emphasise?

• Responsibility to a wider group of stakeholders

• Maximising shareholder profits

• Reducing operational costs

• Increasing market share

What important element does the Stakeholder Theory recognise?

• Corporate Social Responsibility (CSR)

• Profit maximisation

• Market expansion

• Cost reduction

What do companies owe to customers according to Carroll's pyramid?

• Good quality products

• Discounted prices

• Free services

• Extended warranties

Which companies are mentioned as having brought stakeholder theory into the spotlight in the UK?

• Apple and Microsoft

• Starbucks, Google, and Facebook

• Amazon and Netflix

• Tesla and SpaceX

What does ESV stand for?

• Enlightened Stakeholder Value

• Enlightened Shareholder Value

• Ethical Shareholder Value

• Economic Stakeholder Value

What does CSR stand for?

• Corporate Social Responsibility

• Corporate Stakeholder Relations

• Corporate Strategic Resources

• Corporate Shareholder Rights