business stake holders

Question 1

what’s a stakeholder

Answer 1

anyone who has an interest in the activities of a business such as its workers, it’s suppliers, the local community and the government

Question 2

stock exchange

Answer 2

a place where shares in PLCs can be bought and sold

Question 3

who are the business stakeholders

Answer 3

shareholders (owners)
employees
customers
managers
suppliers
local community
pressure groups
government

Question 4

impacts of shareholders on business activity

Answer 4

set the aims and strategy for the business
provide funding and investment to start up and expand business

Question 5

impact of employees on business activity

Answer 5

provide good service, higher sales and profits

Question 6

impact of customers on business activity

Answer 6

buy products/ services
make recommendations on how to improve
recommend to friends and on socials

Question 7

impact of managers on business activity

Answer 7

manage employees who do the day to day work of the business
communicate employees needs to senior management
communicate business’s needs to employees

Question 8

impact of suppliers on business activity

Answer 8

provide business with material needed for product/service
affect the amount of product services that can be produced and sold
impact sales and reputation

Question 9

impact of local community on business activity

Answer 9

support local business by buying
object to business if it has negative impact to them or environment

Question 10

how do pressure groups impact business activity

Answer 10

change business’s practices eg delivery times or packaging
improve employee conditions eg health and safety in workplace or fair wages
influence customer opinions of the business and their buying habits

Question 11

how does government impact business activity

Answer 11

changes amount of tax the business has to pay
passes new laws relating to the business and its industry
promotes diff type of business activity by providing special funding for particular activities eg availability of grants for wind farms has increased the number of businesses installing and operating wind farms

Question 12

what is a pressure group

Answer 12

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

Question 13

how are shareholders affected by business activity

Answer 13

may decide to grow the business and authorise opening new stores.
They will expect to see sales increase over time.
However, opening a new store will cost money,
which may affect profits in the short term and could affect the amount of dividends they will receive.

Question 14

how are managers affected by business activity

Answer 14

Managers take on additional responsibilities and set new targets. They may have opportunities for career progression, and they could become demotivated if they are not given such opportunities.

Question 15

how are employees affected by business activity

Answer 15

Employees have increased job security as a business grows.
They could also have opportunities for promotion to new roles.
Some employees could feel resentful if they are not offered opportunities.

Question 16

how are customers affected by business activity

Answer 16

Customers will benefit from having more choice about where to shop,
but they may remain loyal to existing businesses.
Through good marketing activity by the business, some may be tempted to try the new store.

Question 17

how are customers affected by business activity

Answer 17

Customers will benefit from having more choice about where to shop,
but they may remain loyal to existing businesses.
Through good marketing activity by the business, some may be tempted to try the new store.

Question 18

how are suppliers affected by business activity

Answer 18

Suppliers benefit from increased orders to equip and stock the new store,
which might lead to an increase in their profits.
however If they are unable to cope with the extra demand,
there is a risk that the business will use other suppliers.

Question 19

how is local community affected by business activity

Answer 19

will benefit as a new store is likely to bring new jobs.
However, they may be unhappy with increased traffic or noise

Question 20

how are pressure groups affected by business activity

Answer 20

may protest against the new store if they feel their cause is adversely affected
eg if the store would increase pollution.
This could deter other businesses from coming to the area.

Question 21

how is the government affected by business activity

Answer 21

may be pleased to see new jobs being created
may expect to see increases in tax revenues as a result.
However, other businesses could lose customers,
which would reduce their profits and the tax they have to pay as a result.