Business Studies Unit 1- Stakeholders

Question 1

Describe and explain the following groups that have an interest in a business: Managers

Answer 1

Managers are rewarded with a salary and they have a great interest in the success of the business since their employment depends on it

Question 2

Describe and explain the following groups that have an interest in a business: Employees

Answer 2

They rely on the business for their livelihood. They are interested in the success of the business so that they have job security and are sure of their wages to maintain their own households

Question 3

Describe and explain the following groups that have an interest in a business: Owners

Answer 3

They have invested their money in the business and for many owners they depend on the business for their livelihood. Their reward is in the form of profit.

Question 4

Describe and explain the following groups that have an interest in a business: Shareholders

Answer 4

Thief interest as owners is that they receive a dividend which is a share if the annual profit. If the company is not making a profit the shareholders risk losing their shares.

Question 5

Describe and explain the following groups that have an interest in a business: Directors

Answer 5

They have an overall responsibility for the running if the company and their reward is that they receive a salary.

Question 6

Describe and explain the following groups that have an interest in a business: Producers

Answer 6

They want the business to succeed as they do not want to lose any of their customers and want to ensure that they are prosperous and able to pay their accounts.

Question 7

Describe and explain the following groups that have an interest in a business: Consumers

Answer 7

Consumers have an interest in the business to succeed because the more business that exists the greater the competition and a wider variety of goods on offer

Question 8

Describe and explain the following groups that have an interest in a business: Lenders

Answer 8

All lenders regardless of the size of their loans to the business have an interest in the business succeeding so that they have the confidence that the business will be able to repay their loans.

Question 9

Describe and explain the following groups that have an interest in a business: Pressure groups such as trade unions

Answer 9

Trade unions will have an interest in seeing a business succeed because it ensures the safety of its members jobs.
Pressure groups such as greenpeace may lobby a business if it has plans to engage in activity which they do not agree with eg cutting down trees.