BH 1.4

Identify the external stakeholder group from the options below.

• Customers

• Employees

• Managers

• Directors

Identify the internal stakeholder group from the options below.

• Suppliers

• The government

• Owners

• Lenders

Identify the term that best describes when directors wish for large bonuses and perks (such as company cars) while shareholders wish for higher dividends.

• Stakeholder conflict

• Crisis management

• Resistance to change

• Contingency planning

Identify the best description of the function of stakeholder analysis.

• To assess the impact of a business decision to determine stakeholder conflicts and areas of mutual agreement

• To determine a firm’s internal and external stakeholders

• To determine the firm’s key stakeholders based on their levels of power and interest

• To identify the driving and restraining forces for seeking new shareholders

Identify the most appropriate level of effort a firm should apply towards stakeholders that have low power and low interest in the business decision.

• Minimal

• Maximum

• Medium

• Ignore

Identify the most appropriate level of effort a firm should apply towards stakeholders that have low power and high interest in the business decision.

• Commit minimal effort

• Keep them informed

• Keep them satisfied

• Commit maximum effort

Identify a situation when customers hold a high level of power.

• When there is a large number of substitute products

• When there are only a few, large clients in the market

• When there are a few suppliers in the market

• Both (A) and (B)

A car manufacturer plans to remove a forest to build a new factory, employing 300 people to produce the company’s most profitable car. Identify two stakeholder groups in conflict.

• Competitors and pressure groups

• Employees and shareholders

• Pressure groups and shareholders

• Suppliers and customers

Identify the statement that best describes a stakeholder of a business.

• Business owners

• Company decision makers

• Groups and individuals with an interest in the organization

• Options A and B

Identify the stakeholder group most interested in the profits of a business.

• Employees

• Suppliers

• Shareholders

• Governments