Stake holders and shareholders Flashcards
Define a stakeholder
Anyone with an interest in the business - usually individuals, groups or organisations that are affected by the activity of the business
What is the difference between a shareholder and a stakeholder
Shareholder = someone with shares WITHIN the business
Stakeholder= someone with interests in the business - ANYONE who is affected by the overall activity of the business
Give examples of stakeholders in any business
The owners, the competitors of the business, investors, suppliers, customers, managers, government agencies etc
What does it mean for stakeholders to have “conflicting interests”
When either group of stakeholders are interested in the business for a different reason than the other group. conflicting views and purpose of their interest in the business
give an example of 2 groups of stakeholders with conflicting views
Owners v Competitors - owners want to see the business thrive whilst the competitors want to see the downfall of the business
what is a shareholder?
anyone with shares within your company/business
what is the purpose of shareholders?
to have people investing into your company + raising finance
what decisions do shareholders make?
they decide who the directors are through a democratic vote. 51% of SHARES needed to rule
what are the profits called that you get as a shareholder?
dividend
how much are shareholders limited to losing?
only as much as they invested into the company
what are the objectives of employee stake holder group?
securing jobs + higher pay
what are the objectives of owner/shareholder stake holder group?
high dividends
what are the objectives of local community stake holder groups?
minimising environmental impact on community + providing local jobs
what are the objectives of government stake holder groups?
taxes paid + legal behaviour
what are the objectives of suppliers stake holder groups?
paid on time + kept informed of changes