Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

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Which of these makes a person considered a stakeholder?

The person is a spouse of someone involved in the company
The person has some investment in the company
The person regularly shops at the store
The person regularly reads advertisements for the store

The correct answer is: The person has some investment in the company

A stakeholder is defined as any individual or group that has an interest in or is affected by the activities and operations of a business or organization. This typically includes those who have a financial or vested interest in the company, such as investors, employees, customers, and suppliers. The correct answer, which highlights that a person has some investment in the company, captures this essential definition of a stakeholder. Having an investment implies a direct connection and a level of commitment to the organization's success, which is a fundamental characteristic of stakeholders. In contrast, while a spouse of someone involved in the company may have an indirect and personal connection, they do not necessarily have a stake in the company's outcomes. Regular shoppers or those who read advertisements may engage with the company but lack a financial or significant interest that would classify them as stakeholders. Therefore, only the individual with some investment truly meets the criteria for being a stakeholder.