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ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations

Which of the following best describes a primary stakeholder, as opposed to a secondary stakeholder?

A primary stakeholder is a group whose continuing participation is essential for the organisation's survival, such as shareholders, employees, customers and suppliers. Secondary stakeholders can influence or be affected by the organisation but are not vital to its operation.

  1. AA group without whose continuing participation the organisation cannot survive as a going concernCorrect
  2. BA group that the media reports on most often
  3. CAny group that is external to the organisation
  4. DA group that has no influence on the organisation

Explanation

Primary stakeholders, such as shareholders, employees, customers and suppliers, are essential to the organisation's survival. Secondary stakeholders can influence or be affected by it but are not essential to its operation. Being external or reported in media does not define primary status.

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