Stake holders and shareholders Flashcards

1
Q

Define a stakeholder

A

Anyone with an interest in the business - usually individuals, groups or organisations that are affected by the activity of the business

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2
Q

What is the difference between a shareholder and a stakeholder

A

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

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3
Q

Give examples of stakeholders in any business

A

The owners, the competitors of the business, investors, suppliers, customers, managers, government agencies etc

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4
Q

What does it mean for stakeholders to have “conflicting interests”

A

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

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5
Q

give an example of 2 groups of stakeholders with conflicting views

A

Owners v Competitors - owners want to see the business thrive whilst the competitors want to see the downfall of the business

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6
Q

what is a shareholder?

A

anyone with shares within your company/business

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7
Q

what is the purpose of shareholders?

A

to have people investing into your company + raising finance

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8
Q

what decisions do shareholders make?

A

they decide who the directors are through a democratic vote. 51% of SHARES needed to rule

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9
Q

what are the profits called that you get as a shareholder?

A

dividend

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10
Q

how much are shareholders limited to losing?

A

only as much as they invested into the company

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11
Q

what are the objectives of employee stake holder group?

A

securing jobs + higher pay

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12
Q

what are the objectives of owner/shareholder stake holder group?

A

high dividends

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13
Q

what are the objectives of local community stake holder groups?

A

minimising environmental impact on community + providing local jobs

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14
Q

what are the objectives of government stake holder groups?

A

taxes paid + legal behaviour

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15
Q

what are the objectives of suppliers stake holder groups?

A

paid on time + kept informed of changes

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16
Q

what are the objectives of customer stake holder groups?

A

useful info on product, good service + value

17
Q

how does the business have an impact on stakeholders

A

success effects number of employees

effects shareholders + dividends

impacts gov with trying to pay minimal tax

effects how employees are treated + wages

18
Q

how can stakeholders influence a business?

A

negotiation (employees asking for better pay or suppliers demand better terms)

direct action - boycotting the business from customers

refusal to cooperate with business’ requests from local community

democracy/voting from owners within a business

competitors - lower the prices making customers switch