Stakeholder theory differs from shareholder theory by:

A Ignoring shareholders

B Considering the interests of all stakeholders (employees, customers, community) not just shareholders

C Focusing only on profit

D Eliminating governance

✓ Correct Answer: Option B

Stakeholder theory: firms should consider all stakeholders, not just maximize shareholder wealth.

💡 Why is B) the correct answer?

The correct answer to the question "Stakeholder theory differs from shareholder theory by:" is Option B: Considering the interests of all stakeholders (employees, customers, community) not just shareholders.

The other options — A) Ignoring shareholders, C) Focusing only on profit, D) Eliminating governance — are incorrect for this CFA Exam Prep question. As explained above: Stakeholder theory: firms should consider all stakeholders, not just maximize shareholder wealth.

📚 About This CFA Exam Prep Practice Question

This 2-level CFA Exam Prep question from the Corporate Finance topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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Stakeholder theory differs from shareholder theory by:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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