tq4 ch01.04 stakeholders

What is the definition of a stakeholder in an organisation?

• A person who is only concerned with their own profits

• A person who has an interest in the organisation and tries to influence its decisions

• A person who is not part of the organisation

• A person who has no interest in the organisation

Who are considered internal stakeholders in a company?

• Customers

• Suppliers

• Shareholders

• Lenders

What are the main concerns of lenders to a company?

• Ensuring customers pay on time

• Ensuring the company grows in size

• Ensuring the borrower can repay the debt with interest

• Ensuring the company invests in new projects

Why might the government be interested in business organisations?

• To create and maintain a strong economy

• To avoid regulating business activities

• To increase levels of unemployment

• To reduce company profitability

What stake do customers have in a business organisation?

• They expect to obtain value from the goods or services they buy

• They expect to become shareholders

• They expect to become employees

• They expect to control the company's decisions

Why are non-executive directors considered external stakeholders?

• Because they are full-time employees of the company

• Because they have a majority shareholding

• Because they bring external experience and knowledge to the board

• Because they are involved in the day-to-day management

Who are the most influential stakeholders in a company?

• Middle managers

• Board of directors and senior executives

• Junior employees

• Non-executive directors

What is the purpose of stakeholder mapping?

• To avoid involving stakeholders in decision-making

• To assess main stakeholders and consider how to win their support

• To limit the power of stakeholders

• To ignore the interests of stakeholders

How are stakeholders categorized in Mendelow's power/interest matrix?

• By age and gender

• By interest and power

• By job title

• By location

What should be done for stakeholders with weak power and low interest?

• Avoid actions that might increase their interest

• Keep them informed even if they oppose

• Minimal effort is needed to keep them informed

• Persuade them to exercise their power