LO1 Business Environment

Who are primary stakeholders in an organization?

• a) Customers

• b) Suppliers

• c) Shareholders

• d) All of the above

Which of the following is a secondary stakeholder?

• a) Employees

• b) Competitors

• c) Shareholder

• d) Management

What is a common interest of employees as stakeholders?

• a) High-quality products

• b) Return on investment

• c) Job security

What do communities often seek from organizations as stakeholders?

• a) High profits

• b) Sustainable business practices

• c) Competitive pricing

• d) Ethical leadership

What is a key characteristic of effective business objectives?

• Vagueness

• Complexity

• Measurability

Which group is directly involved in the day-to-day operations and is considered a primary stakeholder?

• Customers

• Management

• Competitors

• Creditors

Why is setting time-bound objectives important?

• To create vagueness

• To provide a sense of urgency

• To avoid achievement

• To discourage employees

Why do primary stakeholders often require more direct engagement from organizations?

• They are less important

• They have less influence

• Their interests have a direct impact