Business Management Quiz - 1.1 - 1.4

Any individual or organization affected by the activities and performance of a business is known as a stakeholder.

• True

• False

Stakeholders can be both (a)   and external to a business.

The local community is an example of an external stakeholder group for a business.

• False

• True

When managing stakeholders’ interests, successful businesses strive to ensure the interests of most stakeholders are satisfied most of the time.

• True

• False

Suppliers are not stakeholders because they have no direct interest in how a business performs.

• True

• False

A (a)   is interested in what rivals are doing as it may impact on their sales revenue and profits.

An organization can change its business objectives over time due to changes in both the internal and external environments.

• True

• False

A (a)   statement tends to be narrow and specific.

The statement which sets out an organization’s purpose and its corporate values is known as the vision statement.

• True

• False

Answer explanation

This is known as the mission statement.

Business objectives are the clearly defined and measurable targets or goals of an organization.

• True

• False