Questions and Answers
Which of the following is a characteristic of an internal stakeholder?
Directly related to the core operations of a business
What is a primary interest of owners as internal stakeholders?
Maximizing profits
Who could be considered an external stakeholder of a business?
Consumers
What is a common interest of managers and employees as internal stakeholders?
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What distinguishes an external stakeholder from an internal stakeholder?
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Study Notes
Stakeholders
- An internal stakeholder is an individual or group within an organization who is directly affected by the organization's actions.
Owners as Internal Stakeholders
- A primary interest of owners as internal stakeholders is to maximize profits and increase the value of their investment.
External Stakeholders
- Examples of external stakeholders of a business include customers, suppliers, government, and local communities.
Common Interests of Managers and Employees
- A common interest of managers and employees as internal stakeholders is job security and working conditions.
Distinguishing Internal and External Stakeholders
- What distinguishes an external stakeholder from an internal stakeholder is their level of involvement and connection to the organization; internal stakeholders are directly employed or invested, while external stakeholders are outside the organization but affected by its actions.
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