1.5.1 - Business stakeholders

Which of the following best describes the term stakeholder? An individual or organisation that:

• Owns part of a business

• Provides a business with materials

• Is affected by, or has an interest in, the activities of a business

• Provides finance for a business

The owner of a building firm that plans to build a housing development on a local field has received complaints from residents in the surrounding area about the loss of greenspace. Conflict has occurred between:

• The local community and the owner

• Customers and the owner

• A pressure group and the employees

• Employees and the owner

Which of the following describes one way employees could have an impact on business activity?

• By demanding a longer payment period for supplies

• By negotiating better working conditions

• By no longer purchasing the goods or services of a business

• By increasing the amount of tax payable on profits

Which of the following stakeholders would have the objective of prompt payment for goods and services provided?

• Suppliers

• Local community

• Employees

• Customers

A local business wants to expand its factory to increase production capacity. Which of the following stakeholders has the authority to grant the required planning permission?

• Pressure group

• Shareholders

• Local community

• Local government

Which of the following is most likely to be the objective of a customer?

• Purchasing quality products that reflect the selling price

• Maximising pay levels

• Increase in share price

• Rise in dividend payments

A business plans to cut jobs to reduce costs. Conflict is likely to occur between which two of the following stakeholder groups regarding this decision?

• Owners and employees

• Suppliers and customers

• Owners and customers

• Employees and local community

A pressure group is best described as a group of people that seek to influence:

• Business behaviour

• Government policy

• Legislation

• All of the above

A local community has raised concerns over an entrepreneur’s plans to open a new, independent 24-hour fast food business in the area. The local community could influence this business decision most effectively by:

• Voting

• Protesting

• Striking

• Boycotting the purchase of its food

Which of the following stakeholders is most likely to have the objective of maximising pay?

• Suppliers

• Customers

• Owners

• Employees