ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
Which of the following is an example of an external stakeholder of a business?
A bank providing a long-term loan is an external stakeholder because it sits outside the organisation yet has a financial interest in its ability to repay. Supervisors, directors and internal auditors all work within the business, so they are internal stakeholders.
- AA production supervisor employed by the company
- BA bank that has provided a long-term loan to the companyCorrect
- CA director who sits on the company's board
- DA member of the internal audit team
Explanation
External stakeholders are outside the organisation but affected by or able to influence it. A lender is external, whereas supervisors, directors and internal auditors are all internal to the business. Directors are internal stakeholders because they manage the organisation.
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