1.4 Understanding Stakeholders in Business

What is a stakeholder?

• A person who owns shares in a company

• A person or group who is affected by, or has an interest in a business

• A person who works for a company

• A person who manages a company

Which of the following is an example of an internal stakeholder?

• Customers

• Suppliers

• Employees

• Government

Which of the following is an example of an external stakeholder?

• Managers

• Shareholders

• Customers

• Employees

What is the primary objective of shareholders?

• To ensure employee satisfaction

• To maximise profits and dividends

• To provide quality products

• To maintain environmental standards

How can a business activity impact its suppliers?

• By increasing their market share

• By changing the demand for their products

• By improving their working conditions

• By reducing their tax obligations

Which stakeholder is most concerned with the ethical practices of a business?

• Customers

• Employees

• Government

• Local community

How can customers influence a business?

• By setting the company's prices

• By choosing to buy or not buy products

• By hiring and firing employees

• By writing company policies

A business cuts jobs to reduce costs. This is most likely to cause conflict between which two stakeholder groups?

• Owners and employees

• Suppliers and customers

• Owners and customers

• Employees and the local community

Which of the following is a common objective of employees as stakeholders?

• To increase company profits

• To receive fair wages and job security

• To expand the business globally

• To reduce competition

How can government regulations impact a business?

• By increasing employee salaries

• By changing tax levels

• By reducing product quality

• By increasing customer loyalty