CFA Level I · CFA Level I Exam · Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
Which of the following groups is most likely to be classified as an internal stakeholder of a corporation?
Employees are most likely internal stakeholders. Internal stakeholders work within the corporation, including employees, managers and directors. Suppliers and regulators are external stakeholders, since they interact with the firm from outside and are not part of its internal organization.
- AEmployeesCorrect
- BRegulators
- CSuppliers
Explanation
Internal stakeholders are those inside the company, such as shareholders, managers, the board and employees. Suppliers and regulators are external stakeholders because they deal with the company from outside its organizational structure.
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