LO5 Flashcards
Paper - Sampled material
What would be an internal stakeholder to an LTD?
Section a - multiple choice - question 1
1 mark
Directions
Direct influence with the company.
Owners, employees, trade unions
Employees = CEO, director, managers, supervisors, assisants
Define internal stakeholder
Internal stakeholders are based within the business
Define external stakeholders
External stakeholders are based from outside the business
Internal stakeholder -> 3 examples of owners aims
1) make enough profit
2) achieve business growth
3)be competitive
internal stakeholder -> 3 aims of employees and trade unions
1 Job security
2)good working conditions
3)high pay
external shareholders -> 3 objectives for customers
1) low prices
2) good choice of product
4)voting rights
external shareholders-> 3 objectives for suppliers
1)high prices
2)regular oders
3)being paid on time
external shareholders-> 3 aims for shareholders and potential investor
1)high dividends
2)high share prices
3)voting rights
external shareholders-> 3 aims of banks and lenders
1)high interest rate
2)being paied back on time
3)business loyalty
external shareholders->3 aims of local residents
1)minimise pollution
2)reduce traffic congestion
3)more jobs
external shareholders-> central goverment 3 objectives
1)health and safety
2)collecting taxes
3)being enviromentally friendly
external shareholders-> pressure groups 3 aims
1)stop child labour
2)preserve the woodlands and forest
3)stop product testing on animals
external shareholders-> 3 objectives of the local goverment
1)enviromental health
2)building control
3)stopping fly tipping
define overtime
working extra hours beyond what employees are contractually obliged to do
Define strike
an organised form of industiral action where workers don’t attend their job
Define boycott
a refusal to buy goods and services from the businesses
How can employees alter a business?
Employees can refuse to work overtime
How can trade unions alter a business?
Trade unions can call a strike
How can customers alter a business?
Customers can alter a business by boycotting a business
How can pressure groups alter a business?
Pressure groups can protest
How can suppliers alter a business?
Suppliers can refuse to supply the business
How can local residents alter a business?
local residents can complain to the local press
How can local goverment alter a business?
Local goverment can withhold planning permission
How can central goverment alter the business?
Central goverment can fine the business
How can shareholders alter a business?
Shareholders can hold an extradorinary meeting
Define conflict resolution
dealing with and resolving a disagreement completely
Define conflict management
The process of limiting the negative effects of a conflict
Name 3 consequences that can happen if a business and stakeholder harm the business
loss of profit
bad publicity
damaged reputation
name 3 finacial consequences if a business fails to listen to its stakeholders
1) weaker cash flow position
2)loss of market share
3)falling share price
Name 4 employee related consequences if businesses don’t listen to the stakeholders
1) demotivated staff
2)employees quitting their job
3)increased staff absence
4)unhelpful staff
What does sustainilibity mean in a business?
protecting natural resources for future generations
High prices
bank loyalty
being paid on time
which external stakeholder will have this view?
Banks and lenders.
Prevents pollution
prevent traffic congestion
more job opportunities
which external stakeholder will have this view?
local residents
high prices
regular orders
being paid on time
which external stakeholder will have this view?
suppliers
high share price
high dividends
voting right
which external stakeholder will have this view?
shareholders and potential investors
low prices
good quality of products
good choice of products
which external stakeholder will have this view?
customers
health and safety
collecting taxes
enviromentally friendly
which external stakeholder will have this view?
central goverment
Building control
enviromental health
flying tipping
which external stakeholder will have this aim?
local goverment
Preserve woodlands
stop animal testing
stop child labour
which external stakeholder will hold these views?
pressure groups
Profit
growth
competitveness
which internal stakeholder will have this view
the owner
high pay
good working conditions
job security
which internal stakeholder will have these views?
employees and the trade union
