Question

Distinguish between 'stakeholders' and 'shareholders'.

Answer 1

Stakeholders	Shareholders
Stakeholders are a broader concept than stockholders. In a joint stock corporation, shareholders are individuals or groups who own the business's shares. They contribute share capital and bear the risk of loss. The company's stakeholders include shareholders, consumers, creditors, employees, and the government.	Thus, stockholders are one of multiple stakeholders. The term "shareholders" is exclusive to joint stock companies, while "stakeholders" refers to any type of business entity, including sole proprietorships and partnerships.