1.5.1 - Business Stakeholders Flashcards
1
Q
Stakeholder
A
A stakeholder is any individual or organization that is affected by the activities of a business.
2
Q
Private limited company
A
An incorporated business that is owned by shareholders who invest in the business in return for a share of the profits and voting rights at the annual general meeting.
3
Q
Public limited company
A
An incorporated business that can sell shares to the public
4
Q
Different stakeholders
A
- government
- local community
- suppliers
- customers
- employees
5
Q
Shareholders objectives
A
- to make money by being given a share of the profits of the business in return for their investments
- to make money if they sell their shares - if the business grows and its value goes up, the value of each individual shares increases and the shareholder will make a profit when they sell their shares
6
Q
Employees objectives
A
- to get the best possible pay and rewards for doing their jobs
- to keep their jobs and to ensure that their jobs is secure
7
Q
Customers’ objectives
A
- to get the best possible quality service or product
- to get the best value for money for that product or service
8
Q
Manager’s objectives
A
- to make sure that the business succeeds so that they get paid
- to ensure that their jobs are secure
9
Q
Supplier’s objectives
A
- to increase sales and profits
- to encourage businesses to buy from them again in the future
- to grow their business
10
Q
The objective of the local community
A
To look after the local area and the people in it
11
Q
The influence of pressure groups
A
- encouraging consumers to increase the amount of a product or service that is used
- persuading customers to boycott or stop buying from a business
- encouraging businesses to behave in more ethical ways that help other stakeholders
