AICE Midterm Review #1

Individuals or groups who are separate from the business but are affected by or interested in its operations are

• owners

• internal stakeholders

• external stakeholders

• shareholders

An example of an internal stakeholder is a

• supplier

• employee

• customer

• lender

A customer's role is to

• purchase goods and services

• provide local services and infrastructure

• control, command, and direct resources

• to provide finance

Which of the stakeholders below would benefit from an manufacturing plant moving from City A to City B?

• employees living in City A

• lenders

• local community of City B

• federal government

An increase in shareholder profits resulting from employee layoffs is an example of

• tough luck

• conflict of stakeholders' aims

• shareholders' rights

• ineffective trade unions

If an employee is made redundant, it is no fault of her own.

• true

• false

Suppliers have a responsibility to

• Receive payment on time

• To be treated fairly

• To provide finance as needed

• Supply goods and services in the time and condition per the contract

A sole trader can raise funds by:

• Loan from a bank

• Borrow from friends and/or family

• Issuing stock

• Taking on a partner (and establishing a partnership)

An organization of working people with the objective of improving the pay and working conditions of its members and providing them with support and legal services is a

• Trade union

• Sweat shop

• Special interest group

• Social enterprise

True or False:

A stakeholder must be a shareholder

• True

• False