Question

please also discuss why two other options are incorrect

5. A stakeholder is: a.) A person who owns shares of stock. b.) Any person who has voting rights based on stock ownership of a corporation. c.) A person who initially founded a firm and currently has management control over that firm. d.) A creditor to whom a firm currently owes money. e.) Any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm. 6. Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. I. Compensation based on the value of the stock. II. Stock option plans. III. Threat of a company takeover. IV. Threat of a proxy fight. a.) I and II only. b.) III and IV only. c.) I, II, and III only. d.) I, III, and IV only. e.) I, II, III, and IV. 7. The 2008 balance sheet of Saddle Creek, Inc., showed current assets of $1,390 and current liabilities of $880. The 2009 balance sheet showed current assets of $1,680 and current liabilities of $1,040. What was the company's 2009 change in net working capital, or NWC? a.) $-240 b.) $130 c.) $450 d.) $-450 e.) $2,050 Change in NWC = NWCend - NWCbeg Change in NWC = (Caend - Clend) – (CAbeg - Clbeg) 8. Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7.4 million. The machinery can be sold to the Romulans today for $4.15 million. Klingon's current balance sheet shows net fixed assets of $3.45 million, current liabilities of $1.6 million, and net working capital of $540,000. If all the current assets were liquidated today, the company would receive $1.3 million cash. Calculate the Book Value and Market Value of current assets and net fixed assets.

Answer 1

5) A stakeholder is anyone having an interest in the company, it can either affect the company or be affected by the company. Based on this a, b, c, and d are correct.

Statement e is not correct because in that the statement is excluding the stockholders and creditors, which isn't right because they are also the stakeholders of the company.