Stakeholders are the individuals who invest money with a vested interest into a newly set up companies or in those companies moving towards expansion by watching their investment afar. If he is dissatisfied with that particular company, he may take his investment away.
Stakeholders can observe the progress of business projects to make possible that their investments are not wasted and enhance the ability to invest more and more. On the other hand, when there is a conflict in the business in which he was invested then he might need to involve and resolve the issue before it increases rapidly.
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