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ACCA Applied Knowledge · Business and Technology · The purpose and types of business organisation

Which of the following is the best example of a stakeholder whose interest in a company is mainly financial and who is classed as connected rather than internal?

A bank that has lent money is a connected stakeholder because it sits outside the company but has a direct financial interest in being repaid with interest. Production managers and directors work within the company, so they are internal stakeholders.

  1. AA bank that has lent money to the companyCorrect
  2. BA production manager employed by the company
  3. CA director of the company

Explanation

A lender is outside the organisation but has a direct financial link, so it is connected. Managers and directors are internal stakeholders.

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