Economics B 1.1.3

Which category of stakeholders is described as having low power but high interest?

• Suppliers to the company

• Local council

• Non-management employees

• Unaffected members of the local community

What is the key interest of the government as a stakeholder in a business?

• Repayment of loans/interest

• High sales, steady growth, good liquidity

• Growth, high turnover, high profits, increased tax revenue and environmental awareness

• Salary, job security, career progression, motivation

What type of power and influence do owners have over a company?

• Enforce objectives in order to meet corporate missions

• Direct missions and objectives

• Spending power, brand awareness/recommendation

• Elect directors and directors

Which of the following is an example of a stakeholder with high power and high interest?

• Suppliers to the company

• Local council

• Non-management employees

• Unaffected members of the local community

What is a stakeholder conflict?

• A) A disagreement between the company and its competitors

• B) A situation where different stakeholders have interests that cannot be satisfied by the same corporate action

• C) A legal dispute between a company and the government

• D) A conflict within the management team of a company

Which of the following is an example of a stakeholder conflict?

• A) Management vs Employees: Management wants to generate more cash while employees are not willing to work harder until their salaries improve.

• B) Suppliers vs Banks: Suppliers want to receive payments faster, while banks want to lend money to the company.

• C) Government vs Consumers: Government wants to increase taxes, while consumers want to pay less.

• D) Owners vs Competitors: Owners want to increase market share, while competitors want to reduce it.

What is one thing Corporate Social Responsibility (CSR) concerned with?

• A) Increasing the company's market share

• B) Reducing the damage a company causes to the environment

• C) Maximizing shareholder wealth

• D) Expanding the company's operations internationally

How can Corporate Social Responsibility (CSR) be beneficial for a company?

• A) By allowing the company to avoid taxes

• B) By increasing the company's expenses and reducing profits

• C) By enhancing the company's reputation and potentially increasing market share

• D) By solely focusing on the interests of the shareholders

What is the opportunity cost in decision-making?

• The additional revenue gained by a firm from selling one more unit of output.

• The idea of achieving the minimally acceptable result rather than the optimal solution.

• The next best alternative that is forgone when making a decision.

• An objective of most firms to generate as much profit as possible by choosing a certain quantity of output and price.

What does profit maximisation refer to?

• The additional revenue gained by a firm from selling one more unit of output.

• The next best alternative that is forgone when making a decision.

• The idea of achieving the minimally acceptable result rather than the optimal solution.

• An objective of most firms: to generate as much profit as possible by choosing a certain quantity of output and price.