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1. Read the following.

What is the difference between stockholder and stakeholder?


Definition of Stockholder
A stockholder or shareholder is the owner of shares of a corporation's common or
preferred stock.
Definition of Stakeholder
A stakeholder is anyone that has an interest or is affected by a corporation or other
organization. In other words, a stockholder isn't the only party having a stake in the
corporation. 
Examples of Stakeholders
The stakeholders in a corporation include its: stockholders, creditors, employees, families of the
employees, suppliers, customers, community, and others.
A example of an organization that does not have stockholders is a state university. Even though
it does not have stockholders, the university will have the following stakeholders: students,
students' families, alumni, professors, administrators, businesses, state taxpayers, the local
community, the state community, society in general, custodians, suppliers, etc.

What is a Board of Advisors?


A Board of Advisors is a group composed of business professionals that provides advice on how
a business owner can better manage his company. Because of the informal nature of this type
of board, it can be structured in a way that the owner deems necessary and most helpful to his
company. Advisors typically receive stock-based compensation, such as Options, and benefit
from an increased valuation of the business.

What is a Board of Directors?


A board of directors is essentially a panel of people who are elected to represent shareholders.
Every public company is legally required to install a board of directors; nonprofit organizations
and many private companies – while not required to – also name a board of directors.

Board of Advisors vs. Board of Directors


Though both a Board of Advisors and the Board of Directors deal with how a company or
business is run, there are a lot of differences between the two, as listed below:
 While the Board of Advisors is informally formed, the Board of Directors, on the other
hand, is composed of individuals who have been instated by means of an election, which
makes them liable to the organization. They are bound by law, as they represent the
company and its stockholders, creating policies and resolving issues related to the
business operations.
 The job of the Board of Directors is more difficult, and its responsibilities are greater
than those of a Board of Advisors. The Board of Directors is more careful with the advice
they give because of their financial responsibility to stockholders.
 While the Board of Advisors is selected personally by the owner of the company and
doesn’t have any voting rights, the Board of Directors is directly involved in decision-
making.
 While the advice of the Board of Advisors may or may not be followed by the owner
or CEO, the Board of Directors is more powerful. It is powerful enough to mandate
changes in the organization and steer the company toward a particular direction.
 A Board of Advisors is composed of individuals who are selected for their specific fields
of expertise. The Board of Directors may need the input of certain specialists or industry
experts in order to help them better understand the situation at hand.
 While a Board of Advisors receives very minimal compensation, the Board of Directors
gets really high pay. The former may only get a free meal during meetings. The Board of
Directors, on the other hand, receives allowances such as travel allowance and a fee for
attending board meetings.

Check out Apple’s organization chart https://theorg.com/org/apple/org-chart

2. Find 2 examples of stockholders, 2 examples of stakeholders, and the organization


chart of any of your preferred companies. You only need to choose ONE company.

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