Stakeholder Theory Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is a primary stakeholder in a business?

Local communities (correct)

Media commentators

Trade bodies

Competitors

What is a common interest of customers as stakeholders?

Increasing stock value

Safe and reliable products (correct)

Prompt payment from the company

Growth in community employment

What negative impact might stockholders face due to unethical behavior?

Higher employee turnover

Loss of dividend payments (correct)

Delayed product deliveries

Increased operational costs

Which group of stakeholders is primarily interested in tax revenue?

Federal government Signup and view all the answers

Which of the following represents a secondary stakeholder?

Social pressure groups Signup and view all the answers

What interest do suppliers typically have in a business?

Regular orders within an acceptable profit margin Signup and view all the answers

What aspect of unethical behavior may affect employees most significantly?

Insufficient funds for pensions Signup and view all the answers

Which of the following is an interest of community stakeholders?

Economic growth Signup and view all the answers

What is a primary concern for stockholders in a company?

Growth in the value of company stock Signup and view all the answers

Which group of stakeholders primarily seeks economic growth and employment for local residents?

Community Signup and view all the answers

What impact might unethical behavior have on customers?

Poor service quality Signup and view all the answers

What is a significant concern for creditors as stakeholders?

Timely repayment of debt Signup and view all the answers

Which of the following best describes a requirement of suppliers or vendor partners?

Prompt payment for delivered goods Signup and view all the answers

What type of stakeholder typically includes government and regulators?

Secondary stakeholders Signup and view all the answers

What is a common result for stockholders when faced with unethical business practices?

Loss of stock value Signup and view all the answers

What is an interest of retail or wholesaler stakeholders?

Safe and reliable products Signup and view all the answers

Study Notes

Stakeholder Concept

A stakeholder is any individual or group affected by, or able to affect, an organization's actions, decisions, policies, practices, or goals.
Stockholders/Shareholders are investors or owners of businesses.

Types of Stakeholders

Primary Stakeholders: Have a direct stake in an organization's success (e.g., shareholders, employees, customers, local communities, suppliers).
Secondary Stakeholders: Have a public or special interest stake, often more indirect (e.g., government, civic institutions, social pressure groups, media, trade bodies, competitors).

Stakeholder Interests

Stockholders/Shareholders: Growth in company stock value, timely dividend payments.
Employees: Stable employment, fair pay, safe work environment.
Customers: Fair exchange, quality products/services.
Suppliers/Vendor Partners: Prompt payment, regular orders.
Retailers/Wholesalers: Accurate deliveries, quality products, timely and reasonable costs.
Federal Government: Tax revenue, compliance with legislation.
Creditors: Principal and interest payments, repayment according to schedule.
Community: Employment of local residents, economic growth, environment protection.

Stakeholder Impact of Unethical Behavior

Stockholders/Shareholders: False/misleading info, loss of stock value, dividend cancellation.
Employees: Loss of employment, insufficient severance/pension funds.
Customers: Poor service quality.
Suppliers/Vendor Partners: Delayed/unpaid payments, especially during bankruptcy.
Federal Government: Loss of tax revenue, non-compliance.
Creditors: Loss of principal/interest, failure to repay.
Community: Unemployment, economic decline.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on the concept of stakeholders and their classifications. This quiz covers primary and secondary stakeholders, their interests, and the differences between stockholders and other stakeholders. Perfect for business students or professionals looking to refresh their understanding.