ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
Under the stakeholder view, which group is most clearly a primary stakeholder of a manufacturing company?
A contracted supplier of key components is the clearest primary stakeholder, because it has a direct economic relationship with the company and is essential to its operations. Pressure groups, the press and distant members of the public are secondary stakeholders.
- AA pressure group campaigning on a national issue
- BThe press
- CA supplier on whom the company relies for key components under contractCorrect
- DThe general public in another country
Explanation
Primary stakeholders have a direct, often contractual, relationship with the company and are essential to its operations, such as suppliers, employees, customers and lenders. The other groups are secondary, with only indirect influence or interest.
Did you get it right without looking?
One question tells you little. A timed set on Stakeholders in business organisations shows your real accuracy, how long you take and where you lose marks.
More Stakeholders in business organisations questions
- Using Mendelow's matrix, a pressure group has high interest in a company's pollution record but little power to influence its decisions. How…
- A bank has lent heavily to Tolan Co. The directors propose a large special dividend funded by new borrowing. Which statement best explains t…
- A local residents' association has little power over a quarry company but is highly interested in noise and dust from its operations. Accord…
- Which statement about the use of Mendelow's power-interest matrix is most accurate?
- A retailer's major institutional shareholder has historically shown little interest in day-to-day matters. The retailer now announces a cont…
- Lantern Foods plans to close a local factory. The local community has little formal power but is strongly affected and highly interested. Us…