1.5a Business Stakeholers

Question 1

What is the difference between a stakeholder and a share holder ?

Answer 1

A stakeholder is anyone who has an interest in a business activity
A shareholder is an investor who are part-owners of company

Question 2

Difference between public limited companies and private limited companies

Answer 2

In private limited companies shares can only be bought privately , this is by people who know the entrepreneur

In public limited companies shares can be bought at a stock exchange by members of public

Question 3

Explain one advantage of a business having satisfied employees as stakeholders

Answer 3

• they will do their work to their fullest which means the business will do well
• happier customer service and increase in sales
• create a good reputation

Question 4

What is a pressure group ?

Answer 4

Group of people who join together to try and influence businesses or government for a particular cause

Question 5

What are the possible conflicts between stakeholders?

Answer 5

• their objectives may not always agree. Eg conflict between shareholders and pressure groups
• ## conflict can have direct impact on service provided to customers eg. If employees are on strike