ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
A government tax authority has high power over a retailer but shows no particular interest in it beyond routine filings. Which is the main risk of treating this group as 'minimal effort'?
The risk is that the authority's interest may be aroused, for example by non-compliance, and it could then use its high power against the retailer. A high-power, low-interest group should be kept satisfied rather than given minimal effort.
- AIts interest may be aroused by non-compliance, and its power could then be used against the retailerCorrect
- BIt would immediately become a low-power group
- CIt would move to the keep informed quadrant automatically
- DIt would lose all legal authority over the retailer
Explanation
High power groups belong in 'keep satisfied', not 'minimal effort'. If ignored, they may become interested and use their power, for example through investigation or penalties. Power does not disappear because interest is low.
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