Question

A ____________ is defined as a coalition of individual outsiders who do not necessarily own stock, but can be affected by corporate decision making.

1) corporate director
2) special interest group
3) stakeholder
4) shareholder

Answer 1

The correct term for individuals or entities affected by corporate decision-making but not necessarily owning stock is 'stakeholder'. Stakeholders can include a variety of groups, such as employees, customers, and local communities, whereas interest groups aim to influence government policy.

Step-by-step explanation:

The term in question refers to any individuals or entities that have a stake in a business's operations, which can include employees, customers, communities, and more. The correct option is 3) stakeholder. A stakeholder is not necessarily a shareholder who owns stock in the company but can still be affected by corporate decision-making. In contrast to a stakeholder, an interest group is a collection of people or organizations that aim to influence governmental policy, without necessarily being part of a business or affected by its operations directly.

Interest groups, also known as special interest groups, use various tactics to exert influence, including outside lobbying to sway public opinion and pressing for particularized benefits that favor their stance. Some of these groups might be associations of companies or could even employ contract lobbyists to represent their interests in government.