11G/R 10-11-21 | 1.4. Q1PQ4

The traditional view of business is often referred to as the ___________________ concept.

• shareholder

• stakeholder

_________________ are the owners of the company, the firm has a legally binding duty to take decisions that will increase ___________________value.

• shareholders

• shareholder's

• stakeholder

• stakeholder's

In recent times, this limited view of business responsibility has been extended to include the interests not just of the investors/owners but also of suppliers, employees and customers. This approach to business responsibilities does not end with these four groups, however.

• True

• False

The _________________ or theory is that there are many other parties involved and interested in business activity and that the interests of these groups – local communities, the public, government and pressure groups such as environmental lobbyists – should be considered by business decision-makers.

• stakeholder concept

• shareholder concept

There are _________ main groups of internal stakeholders

• four

• three

Internal stakeholders - each with their own set of interests in the business’s activities.

• True

• False

employees, managers and shareholders fall under:

• Internal Stakeholders

• External Stakeholders

The external stakeholders and their interests include:

• customers, suppliers

• government, banks and other creditors

• special interest groups, community action groups

• competitors

Special interest groups such as:

• - pressure groups that want to change a business’s policy towards pollution or testing of chemicals on animals

• - community action groups concerned about the local impact of business activity

• – fairness of competitive practices, strategic plans of the business.

Competitors :

• – fairness of competitive practices, strategic plans of the business

• - pressure groups that want to change a business’s policy towards pollution or testing of chemicals on animals