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Saturday 17 August 2019

Difference between Stakeholders/Shareholders and Customers

The distinction between Shareholders and
Customers-

1. Shareholders invest their money in the company by buying the shares of the company. Customers do not invest their money in the company.

2. Shareholders receive a share of the profits of the company in the form of a dividend. Customers do not get any dividend. Customers do not get any share in the profits made by the company.

3. In the case of shareholders, there is a risk of loss of money which they have invested in the company. There is always a risk of loss of the capital invested by shareholders in the company. Customers do not have any such risk as they do not invest any money in the company. So there is no risk of losing any money.

4. Shareholders are the stakeholders in the company as they have a financial stake in the company. They have a financial interest in the company as they invest their money in the company in the form of capital. Customers are not stakeholders as they do not have any financial stake or interest in the company. Customers do not invest any money in the company.

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