Ib 1.4 - Stakeholders
Review Questions 1.4 1. Using examples, explain the difference between ‘internal’ and ‘external’ stakeholders.
Internal stakeholders of a business are members of an organisation. They consist of the employees, shareholders (who own the business), managers and directors of the organisation.
External stakeholders do not form part of the business (such as customers, suppliers and the government), but have a direct interest or involvement in the actions of the business. 2. What is the difference between ‘stakeholders’ and ‘shareholders’?
A stakeholder refers to any person or organisation that has a direct interest in and is affected by the performance of a business.
Shareholders are the owners of private and public limited companies. They invest their money in a company by purchasing shares as they expect the company to generate a healthy return on their investment. They are a powerful stakeholder group as they have voting rights and a ‘say’ in how the business is managed. Since shareholders are the owners of a company, they are entitled to a share of its profits. 3. Distinguish between a ‘director’ and a ‘shareholder’ of a company.
Directors are senior executives who have been elected by the company’s shareholders to oversee business operations. If the business is a sole proprietorship, then the senior manager is also the owner, whereas in a limited company the senior staff and directors are elected to run the company on behalf of their owners.
Shareholders are the owners of private and public limited companies. They invest their money in a company by purchasing shares as they expect the company to generate a healthy return on their investment. They are a powerful stakeholder group as they have voting rights and a ‘say’ in how the business is managed. Since shareholders are the owners of a company, they are entitled to a share of its profits. 4. What are the four main types of special interest groups (SIGs)?
Trade unions, or labour unions, aim
Internal stakeholders of a business are members of an organisation. They consist of the employees, shareholders (who own the business), managers and directors of the organisation.
External stakeholders do not form part of the business (such as customers, suppliers and the government), but have a direct interest or involvement in the actions of the business. 2. What is the difference between ‘stakeholders’ and ‘shareholders’?
A stakeholder refers to any person or organisation that has a direct interest in and is affected by the performance of a business.
Shareholders are the owners of private and public limited companies. They invest their money in a company by purchasing shares as they expect the company to generate a healthy return on their investment. They are a powerful stakeholder group as they have voting rights and a ‘say’ in how the business is managed. Since shareholders are the owners of a company, they are entitled to a share of its profits. 3. Distinguish between a ‘director’ and a ‘shareholder’ of a company.
Directors are senior executives who have been elected by the company’s shareholders to oversee business operations. If the business is a sole proprietorship, then the senior manager is also the owner, whereas in a limited company the senior staff and directors are elected to run the company on behalf of their owners.
Shareholders are the owners of private and public limited companies. They invest their money in a company by purchasing shares as they expect the company to generate a healthy return on their investment. They are a powerful stakeholder group as they have voting rights and a ‘say’ in how the business is managed. Since shareholders are the owners of a company, they are entitled to a share of its profits. 4. What are the four main types of special interest groups (SIGs)?
Trade unions, or labour unions, aim