1.5 Stakeholders Flashcards
Stakeholders
An individual or group of people that have an interest in a business
Types of stakeholders (3p)
- Primary/ internal stakeholders
- Secondary/ external stakeholders
- Key stakeholders
Primary/ internal stakeholders (2p)
- People or groups that the business wants to look after
- They are internal to the business and are directly effected by the businesses decisions
Secondary/ external stakeholder
- Outsiders who consider themselves as stakeholders even if the organisation may not
- They are external to the business and are indirectly affected by business decisions
Conflicting objective and overlapping needs
- This is when different people attached to the business have different objectives
- This could cause conflict
Effects the government can have on a business (3p)
Change taxation levels
Giving grants to businesses and organisations
Changing laws
Changing taxation levels (2p)
-If business tax increases, the business will have less money for expansion
- if income tax increases, customers have less money to spend
Giving grants to businesses and organisations
This helps businesses to establish themselves when they might not have succeeded
A grant
A sum of money given to a business by the government for a particular purpose
Benefit of government spending
Increases business activity
Changing laws
A business may need to pay the necessary amount required by law, and this may cause businesses some difficulty
Difference between internal and external (2p) stakeholders
- Internal stakeholders are the owners and people who work in the business
- External stakeholders are outside the business (like customers, suppliers, etc.)
Difference between stakeholders and shareholders (2p)
- A stakeholder can be anyone who has an interest in the business
- Shareholder has shares in the business
Why are shareholders considered stakeholders as well? (2p)
- Shareholders also have an interest in the business because they have invested money into it
- They expect a dividend
