Chapter 5: Stakeholders in a business

Question 1

Stakeholders

Answer 1

Individuals or groups affected by any decision a business makes

Question 2

External stakeholders

Answer 2

Stakeholders not part of the business

Question 3

Internal stakeholders

Answer 3

Stakeholders part of the business

Question 4

Main stakeholders in a business

Answer 4

Owners
Customers
Suppliers
Employees
Local communities
Lenders

Question 5

Trade unions

Answer 5

An organisation of working people with the objective of improving pay and working conditions of its members

Question 6

Stakeholder concept

Answer 6

The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders

Question 7

Business responsibilities to customers

Answer 7

satisfying customer demands, decisions should consider customer aims for well-designed and attractive goods, not breaking the law concerning customer protection

Question 8

Business responsibilities to suppliers

Answer 8

Given clear guidance on requirements, on time payments, regular orders and long-term contracts.

Question 9

Business responsibilities to employees

Answer 9

Provide training opportunities, job security, payment of wages above minimum pay, good working conditions and involvement in some decision-making

Question 10

Business responsibilities to the local community

Answer 10

Offering secure employment, using local suppliers, reducing environmental impacts

Question 11

Business responsibilities to the government

Answer 11

Paying taxes on time, completing government forms accurately and seeking export markets.