Understanding Stakeholders in Business

Which of the following is an example of an internal stakeholder in a business?

• Local community

• Employees

• Suppliers

• Government

Which of the following best describes an external stakeholder?

• Someone who works within the organisation

• Someone who is not directly employed by the organisation but is affected by its activities

• Someone who owns shares in the company

• Someone who manages a department

Shareholders are considered which type of stakeholder?

• Internal

• External

• Neither

• Both

Which of the following is NOT typically considered an external stakeholder?

• Customers

• Suppliers

• Managers

• Local government

Why might a supplier be considered an external stakeholder?

• They are employed by the business

• They provide goods or services to the business but are not part of it

• They own shares in the business

• They manage the business

Which of the following is a primary concern for internal stakeholders?

• Profit margins of competitors

• Working conditions and job security

• Local environmental regulations

• National interest rates

Which group would be most interested in the ethical behaviour of a business?

• Only internal stakeholders

• Only external stakeholders

• Both internal and external stakeholders

• Neither group

Which of the following is an example of a conflict between internal and external stakeholders?

• Employees wanting higher wages while customers want lower prices

• Managers wanting to expand the business

• Shareholders wanting higher dividends

• Suppliers wanting to increase their own profits

Which of the following is most likely to be an objective of an external stakeholder?

• Achieving a promotion

• Receiving dividends

• Receiving quality products or services

• Improving staff morale

Which of the following best describes the role of the local community as a stakeholder?

• They are responsible for setting company policy

• They are affected by the business’s operations, such as employment opportunities and environmental impact

• They manage the business’s finances

• They supply raw materials