IB Business Management 1.4

Shareholders are stakeholders in an organisation.

• True

• False

Customers are external stakeholders.

• True

• False

An organisation of individuals who unite to further their common interest is known as a

• Labor union

• Trade organizations

• Pressure groups

• Campaigning groups

External stakeholders include

• Customers

• Shareholders

• Employees

• Directors

What arises because an organisation cannot meet the needs of all its stakeholders at the same time?

• Conflict

• Miscommunication

• Mismanagament

• Lobbying

Competitors are external stakeholders.

• True

• False

The government is an external stakeholder.

• True

• False

Stakeholders, such as customers and employees, of a socially responsible firm may want the business to donate money to charity. Shareholders of the same firm may not necessarily agree with this since it comes from their potential dividends. This is an example of

• Compliance costs

• Shareholder compliance

• Shareholder conflict

• Stakeholder divergence

Employees are internal stakeholders in an organisation.

• True

• False

Shareholders are external stakeholders in an organisation.

• True

• False