Stakeholders and Shareholders

Question 1

What’s an internal stakeholder?

Answer 1

Someone inside the firm who is affected by the business

Question 2

What’s an external stakeholder?

Answer 2

Someone outside the firm who is affected/ takes an interest in the business

Question 3

Example of internal stakeholders

Answer 3

Owner- want profit, decides what happens to a business
Shareholder- want to make a profit on their share
Employees- interested in job security, decent wage, pleasant working conditions

Question 4

Example of external stakeholders

Answer 4

Customers- want high quality, low prices
Local community- want to gain jobs, avoid pollution and noise
Government- receive taxes on profits

Question 5

Why are shareholders important?

Answer 5

As they can sack directors if they are unhappy with them, and they can sell the business to someone else