3.4.3 Shareholders Vs Stakeholders

Question 1

What is a stakeholder?

Answer 1

A stakeholder is anyone who has interest in the business.

Question 2

What is a shareholder?

Answer 2

A shareholder is a person, business or organisation that owns at least one share of a company.

Question 3

What are internal stakeholders?

Answer 3

Internal stakeholders are those inside a business who may be affected by corporate decision making.

Question 4

What are the 3 types of internal stakeholders?

Answer 4

1.) Employees
2.) Managers
3.) Owners

Question 5

What is an external stakeholder?

Answer 5

External stakeholders are those outside the organisation who are affected by decisions made by the business.

Question 6

What are 5 main general external stakeholders?

Answer 6

1.) Customers
2.) Competitors
3.) Suppliers
4.) Community groups (pressure groups)
5.) Unions

Question 7

What are their objectives?

Answer 7

1.) Customers - Low prices
2.) Competitors - Small local independents see big ones as a threat
3.) Suppliers - High prices for their supplies
4.) Pressure groups - environmentally safe production
5.) Unions - Working conditions + pay