Which is an internal stakeholder?

an employee. Employees are inside the business.

What do suppliers mainly want from a business?

regular orders and prompt payment. They sell to the business and want to be paid on time.

Which pair of stakeholder objectives is most likely to conflict?

owners wanting profit and employees wanting higher wages. Higher wages raise costs and reduce profit.

Why is the local community a stakeholder in a factory?

It is affected by the jobs, traffic and pollution the factory creates. The factory changes life for people nearby.

Which statement is correct?

All shareholders are stakeholders. Owning shares is one way of having an interest in a business.

Stakeholders · Edexcel IGCSE Business 4BS1 revision

In plain words

Many people are affected by what a business does: the owners, the staff, the customers, the neighbours. Anyone with an interest in the business is a stakeholder.

They do not all want the same thing, and a business cannot please all of them at once.

5 things to know

A stakeholder is any person or group with an interest in the activities of a business.
Internal stakeholders are inside the business: owners or shareholders (who want profit), managers (salaries, status) and employees (good pay, job security).
External stakeholders are outside it: customers (quality, low prices), suppliers (regular orders, prompt payment), lenders (repayment with interest), the government (taxes, jobs, laws obeyed) and the local community (jobs, little pollution).
Objectives conflict: higher wages for employees mean lower profit for owners, and lower prices for customers do the same.
A shareholder is one kind of stakeholder: all shareholders are stakeholders, but most stakeholders are not shareholders.

Tips and tricks

Stakeholder and shareholder are different words. Shareholders own part of the company. Stakeholders are everyone with an interest in it.
For a conflict, name both groups and what each wants: "the owners want to build a bigger factory to raise profit, but the local community wants less traffic and noise".

5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Stakeholders: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

Which is an internal stakeholder?
- a customer
- a supplier
- an employee (the answer)
- the local community
Employees are inside the business.
What do suppliers mainly want from a business?
- low prices for its products
- regular orders and prompt payment (the answer)
- high dividends
- low taxes
They sell to the business and want to be paid on time.
Which pair of stakeholder objectives is most likely to conflict?
- owners wanting profit and managers wanting growth
- owners wanting profit and employees wanting higher wages (the answer)
- customers wanting quality and employees wanting training
- lenders wanting repayment and owners wanting to survive
Higher wages raise costs and reduce profit.
Why is the local community a stakeholder in a factory?
- It owns the factory.
- It is affected by the jobs, traffic and pollution the factory creates. (the answer)
- It sets the factory's prices.
- It supplies all its materials.
The factory changes life for people nearby.
Which statement is correct?
- All stakeholders are shareholders.
- All shareholders are stakeholders. (the answer)
- Shareholders are external stakeholders only.
- Stakeholders always want the same things.
Owning shares is one way of having an interest in a business.

5 questions

Tap an answer and you’ll see straight away whether it’s right, and why.

Worksheet

3 questions, 7 marks. Write your answers on paper, then check them.

Stakeholders

Edexcel International GCSE Business 4BS1 · 7 marks · papermunch.org

Name ______________________________ Date ______________

Define a stakeholder.[2]
Show answerHide answer
Any person or group that has an interest in, or is affected by, the activities of a business.
I got this one
State one objective of employees and one objective of customers.[2]
Show answerHide answer
Employees: good pay or job security. Customers: good quality products at low prices.
I got this one
Explain one way in which the objectives of shareholders and employees may conflict.[3]
Show answerHide answer
Shareholders want high profits and dividends. Employees want higher wages, which increase costs and so reduce the profit available for shareholders.
I got this one

Answers: Stakeholders

1. Any person or group that has an interest in, or is affected by, the activities of a business.
2. Employees: good pay or job security. Customers: good quality products at low prices.
3. Shareholders want high profits and dividends. Employees want higher wages, which increase costs and so reduce the profit available for shareholders.