1.5 Business

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

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 private limited company decides to donate 5% of its profits to an organisation that provides a youth club facility to young people. This decision is most likely to directly affect which two of the following stakeholder groups?

Select two answers:

• Employees

• Suppliers

• Customers

• The local community

• Shareholders

They want to make a profit on the money they have invested in the business.

• customers

• managers

• government

• owners / shareholders

Businesses pay them taxes.

• local community

• customers

• employees

• government

They often want to receive a promotion or a pay rise.

• customers

• local community

• employees

• suppliers