1.4 Stakeholders

Question 1

What are dividends?

Answer 1

Dividends are the financial rewards paid out to shareholders each year.

Question 2

What do owners want with dividends?

Answer 2

Owners may want to maximise their returns. For example, they may want to be paid high dividends.

Question 3

Employees:dividends

Answer 3

Employees may want to earn more as a reward for their efforts. They may also want the business to grow so they have promotion opportunities.

Question 4

Suppliers

Answer 4

Suppliers may want to be paid on time. The business may, therefore, set a target to pay all bills within a given period of time.

Question 5

Community

Answer 5

The community may want the business to behave responsibly. The business
may, therefore, set a target in areas such as recycling, noise, waste reduction
and even try to employ local people.

Question 6

What is negotiation?

Answer 6

Negotiation occurs when two sides discuss what they want and try to reach a solution.

Question 7

What is Direct action

Answer 7

Customers can stop buying the products of a business if they are unhappy with the way it behaves. Employees can go on strike and refuse to work if they do not get what they want.

Question 8

What is voting?

Answer 8

The owners of a business can make their views clear and can vote on what the organisation should do next. For example, if three people set
up a business, it may be that two of the owners outvote the other one when
deciding what should