The game will have true Stereo sound with some sounds played on the left and others on the right channel if setup properly.
For DOSBox, it is best if you select option 3 "Sound Blaster Pro" when running SETSND.EXE, and configure DOSBox with either sbtype=sbpro1 or sbtype=sbpro2. It may also work with using the default sb16 emulation that DOSBox provides, but that is simply because not all DOSBox forks emulate the SB16 properly. On a real SB16 you do not get stereo sound with the "Sound Blaster Pro" option.
On a real SB16 you can try option 2 "Sound Blaster & AWE32" (untested) to see if you get stereo, but in DOSBox it will give you mono instead.
When playing the game with default settings in DOSBox you may experience slowdowns during busy scenes. This is due to the cycles=auto setting, which ends up using 3000 cycles which is not enough. The solution is to edit your DOSBox config file, and in the [cpu] section, change cycles=auto to cycles=5000.