ACCA Applied Knowledge · Business and Technology · The purpose and types of business organisation
Which of the following is an example of an external stakeholder of a manufacturing company?
A local authority regulating the company's waste disposal is an external stakeholder because it is outside the organisation yet can affect it and be affected by it. Supervisors, directors and employees are internal stakeholders, being part of the organisation.
- AA local authority that regulates the company's waste disposalCorrect
- BThe production supervisor
- CThe finance director
- DThe company's salaried employees
Explanation
External stakeholders are outside the organisation but affected by or able to affect it. A local authority regulating waste disposal is external. Supervisors, directors and employees are internal stakeholders, so the other options are wrong.
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