Please mention the meaning and definition of the term "STAKEHOLDERS"?

Question

meaning of "STAKE" and "STAKEHOLDERS"

Answer 1

Stakeholders are people or companies who have a stake (an interest) in a company. This does not necessarily mean they own shares in the company. Stakeholders are interested in the company for various reasons, for e.g., creditors are interested in how the company is doing, cos if it's not doing well, the creditors may not be paid, employees are interested cos if the co. is doing well, they will get bigger bonuses, etc. Here's a list of possible stakeholders and the reasons why they're interested in the co.:

(a) Investors. The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of the enterprise to pay dividends.

(b) Employees. Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities.

(c) Lenders. Lenders are interested in information that enables them to determine whether their loans, and the interest attaching to them, will be paid when due.

(d) Suppliers and other trade creditors. Suppliers and other creditors are interested in information that enables them to determine whether amounts owing to them will be paid when due. Trade creditors are likely to be interested in an enterprise over a shorter period than lenders unless they are dependent upon the continuation of the enterprise as a major customer.

(e) Customers. Customers have an interest in information about the continuance of an enterprise, especially when they have a long-term involvement with, or are dependent on, the enterprise.

(f) Governments and their agencies. Governments and their agencies are interested in the allocation of resources and, therefore, the activities of enterprises. They also require information in order to regulate the activities of enterprises, determine taxation policies and as the basis for national income and similar statistics.

(g) Public. Enterprises affect members of the public in a variety of ways. For example, enterprises may make a substantial contribution to the local economy in many ways including the number of people they employ and their patronage of local suppliers. Financial statements may assist the public by providing information about the trends and recent developments in the prosperity of the enterprise and the range of its activities.

Answer 2

The stake is the cost of a certain portion of a business

A stakeholder is someone who holds a stake

Answer 3

Stakeholders are people who own a share in a company, for example if someone you knew (for example a parent) owned a business... you could invest money into it and they could in-turn give u a percentage share of the business.