Asked by Brandon Morrone on Jun 04, 2024
Verified
Forty-one states have enacted corporate constituency stakeholder laws that ________ directors to weigh the interests of constituencies other than shareholders.
A) require
B) command
C) expect
D) permit
Corporate Constituency
The various groups and individuals that a corporation interacts with and has obligations toward, including shareholders, employees, customers, and the community.
Stakeholder Laws
Regulations aimed at protecting the interests of all parties affected by a company's operations, not just its shareholders.
- Understand the impact of corporate actions on stakeholders beyond shareholders.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
D
Explanation :
Forty-one states have enacted corporate constituency stakeholder laws that permit directors to weigh the interests of constituencies other than shareholders,although no state requires the consideration of other constituencies.
Learning Objectives
- Understand the impact of corporate actions on stakeholders beyond shareholders.