Which of the following groups of stakeholders are **not** internal stakeholders?

:br

::indent
- A. $\hspace{1em}$ Managers

- B. $\hspace{1em}$ Suppliers
- C. $\hspace{1em}$ Employees
- D. $\hspace{1em}$ Shareholders


Which of the following statements accurately describes the role of governments as external stakeholders in a business?

:br

::indent
- A. $\hspace{1em}$ Governments ensure unfair business practices are avoided.

- B. $\hspace{1em}$ Governments have no significant impact on businesses as external stakeholders.
- C. $\hspace{1em}$ Governments regulate and monitor the daily working environment of the business.
- D. $\hspace{1em}$ Governments provide financial support to businesses. 


Which of the following statements represents a key feature of privately held companies?

:br

::indent
- A. $\hspace{1em}$ Their shares are freely traded on the stock exchange.

- B. $\hspace{1em}$ They have a large number of shareholders.
- C. $\hspace{1em}$ Ownership is restricted to a small group of individuals or founders.
- D. $\hspace{1em}$ They are required to disclose their financial information to the public.


Which of the following is **not** an external stakeholder in the business?

:br

::indent
- A. $\hspace{1em}$ Competitors

- B. $\hspace{1em}$ Customers
- C. $\hspace{1em}$ Employee
- D. $\hspace{1em}$ Pressure groups


Shareholders are internal stakeholders who: 

:br

::indent
- A. $\hspace{1em}$ Purchase shares from a company

- B. $\hspace{1em}$ Have limited liability
- C. $\hspace{1em}$ Receive dividends
- D. $\hspace{1em}$ All of the above 


Which of the following is an example of an internal stakeholder?

:br

::indent
- A. $\hspace{1em}$ Manager

- B. $\hspace{1em}$ Local community
- C. $\hspace{1em}$ Customer
- D. $\hspace{1em}$ Government


An individual or group of people who have an interest in the actions and outcomes of a business are known as:

:br

::indent

- A. $\hspace{1em}$ Employees 

- B. $\hspace{1em}$ Shareholders 
- C. $\hspace{1em}$ Stakeholders
- D. $\hspace{1em}$ Competitors


What is the primary difference between the statement of profit and loss and the statement of financial position?

:br

::indent

- A. $\hspace{1em}$ The statement of profit and loss shows the company's financial position at a specific point in time, while the statement of financial position reflects the company's financial performance over a specific period.

- B. $\hspace{1em}$ The statement of profit and loss provides information about the company's revenue, costs and expenses, while the statement of financial position presents a summary of the company's assets, liabilities, and shareholders' equity.
- C. $\hspace{1em}$ The statement of profit and loss is prepared for internal management purposes, while the statement of financial position is used for external reporting to stakeholders.
- D. $\hspace{1em}$ The statement of profit and loss is primarily used by investors, while the statement of financial position is more relevant for creditors and lenders.


Which one of the following is **not** a function of the management?

:br

::indent
- A. $\hspace{1em}$ Planning

- B. $\hspace{1em}$ Commanding
- C. $\hspace{1em}$ Inspiring
- D. $\hspace{1em}$ Controlling


[Maximum mark: 4\]

**Explain** why a shareholder and a supplier may have a conflict.

\[Maximum mark: 4\]

**Explain** the key differences between a stakeholder and a shareholder. 

What is the most important objective of a shareholder?

:br

::indent
- A. $\hspace{1em}$ Ensuring short-term profits

- B. $\hspace{1em}$ Ensuring long-term sustainability and growth of the company
- C. $\hspace{1em}$ Promoting social, ethical and environmental responsibility
- D. $\hspace{1em}$ Fostering strong relationships with employees and customers


Which of the following would **not** be a goal of the shareholders of a business

:br

::indent

- A. $\hspace{1em}$ Improved efficiency 

- B. $\hspace{1em}$ Profit maximisation
- C. $\hspace{1em}$ Higher sales revenue
- D. $\hspace{1em}$ Higher staff pay and benefits


\[Maximum mark: 4\]

**Explain** the difference between stakeholders and shareholders.

Which of the following is **not** an example of an external stakeholder?

:br

::indent
- A. $\hspace{1em}$ The media

- B. $\hspace{1em}$ A non governmental organisation (NGO)
- C. $\hspace{1em}$ Shareholder
- D. $\hspace{1em}$ Supplier


Which of the following groups of stakeholders are interested in the company's capacity to increase the worth of its output, ultimately contributing to the growth of the economy's gross domestic product (GDP)? 

:br

::indent

- A. $\hspace{1em}$ Suppliers
- B. $\hspace{1em}$ Banks

- C. $\hspace{1em}$ Government 
- D. $\hspace{1em}$ Customers


What is the most common cause of stakeholder conflict within a business?

:br

::indent

- A. $\hspace{1em}$ Lack of communication

- B. $\hspace{1em}$ Differing goals and interests
- C. $\hspace{1em}$ Inadequate and autocratic leadership
- D. $\hspace{1em}$ Technological disadvantages


[Maximum mark: 4\]

Explain the interests of two internal stakeholders.

\[Maximum mark: 4\]

**Explain** how suppliers and competitors are considered external stakeholders and why they are essential to a company. 

Which of the following would **not** be a cause of stakeholder conflict? 

:br

::indent

- A. $\hspace{1em}$ Power imbalances

- B. $\hspace{1em}$ Different interests 
- C. $\hspace{1em}$ Legal requirements 
- D. $\hspace{1em}$ Clear communication


\[Maximum mark: 4\]

**Explain** two reasons why the shareholders of a business might be concerned about its performance.

A method of conflict resolution between internal groups of stakeholders which improves communication and decreases the possibility of potential conflicts is:

:br

::indent 

- A. $\hspace{1em}$ Worker participation 

- B. $\hspace{1em}$ Profit sharing 
- C. $\hspace{1em}$ Arbitration 
- D. $\hspace{1em}$ Share ownership 


[Maximum marks: 4]


Explain two possible sources of conflict between stakeholders.

A group of workers are becoming demotivated due to the large quantities of profits which a business is generating and allocating to the shareholders while they are not being benefited by the growth of the business. 

Which method of conflict resolution is most adequate in this case?

:br

::indent
- A. $\hspace{1em}$ Share-ownership 

- B. $\hspace{1em}$ Profit-sharing 
- C. $\hspace{1em}$ Arbitration 
- D. $\hspace{1em}$ Worker participation 


What are some possible actions pressure groups may take against businesses?

:br

::indent
- A. $\hspace{1em}$ Providing financial support and investment opportunities

- B. $\hspace{1em}$ Collaborating with businesses to address societal issues
- C. $\hspace{1em}$ Engaging in public advocacy and lobbying efforts
- D. $\hspace{1em}$ Ignoring businesses and their practices


\[Maximum mark: 18\]

JK Recycling Ltd (JKR), a leading plastic bottle recycling industry player, thrives by engaging diverse stakeholders. JKR employees are essential, from the management team driving strategic initiatives to the operational staff ensuring efficient processing of recycled materials.\
JKR collaborates closely with suppliers who provide recyclable plastic, local communities that promote recycling practices, and customers who purchase recycled products. Additionally, environmental organisations support and validate JK Recycling’s eco-friendly practices, while government bodies offer regulatory guidance and incentives.\
Together, these stakeholders create a robust ecosystem, driving JK Recycling’s mission towards a sustainable future.

1. With reference to JKR, **define** the term stakeholder. :marks[2]

2. **Describe** one internal and one external stakeholder of JKR. :marks[4]

3. **Explain** reasons why would a JKR stakeholder conflict occur. :marks[4]

4. **Analyse** how JKR might solve a stakeholder conflict. :marks[6]

5. **Explain** the government's role as a stakeholder group for JKR. :marks[2]

\[Maximum mark: 22\]

FB Catering Ltd (FBC) is a processed food manufacturing company catering to supermarkets and fast food retailers throughout the UK. The factory is based in Oldham, and employees live in the town. Safety and quality standards are essential to FBC as public opinion has an impact. Recent health issues have been a concern, and the government is taking action by providing guidelines to manufacturers and distributing educational materials to schools and institutions to create awareness. FBC plans to cut jobs and invest more in capital-intensive strategies; however, unions are getting involved in addressing employees' concerns. 

1. **Describe** what capital intensive means for FBC. :marks[2]

2. **Explain** how FBC impacts the local community. :marks[4]

3. **Explain** two reasons why FBC shareholders and pressure groups may conflict. :marks[6]

4. **Explain** two ethical reasons why FBC should be concerned about health. :marks[6]

5. **Explain** one reason why FBC should invest in a capital-intensive approach and one reason why they should not. :marks[4]

**Scenario**:\
Rudy & Alan Consulting is a non-profit social enterprise focused on providing free counselling services to vulnerable communities. They rely on voluntary contributions of money, goods, or services made by external stakeholders and 
financial awards or funds provided by governments and external parties to sustain their operations. 

What revenue stream does Rudy & Alan Consulting primarily depend on to support their operations?

:br

::indent
- A. $\hspace{1em}$ Membership fees collected from clients

- B. $\hspace{1em}$ Government subsidies for social services
- C. $\hspace{1em}$ Selling counselling materials and resources
- D. $\hspace{1em}$ Donations and grants from sponsors


Internal & External Stakeholders, Conflicts Between Stakeholders

Paper 1-type questions focus on structured questions on a pre-release statement. Paper 2-type questions focus on structured questions, and paper 3 focuses on unseen stimulus on a social enterprise.

Introduction to Business Management

Types of Business Entities

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Stakeholders

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Growth and Evolution

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Multinational Companies (MNCs)

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The Nature of Business, Sectors of the Economy, Entrepreneurship, Challenges & Opportunities for Starting Up a Business

What is a Business?

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Sole Traders, Partnerships, Privately & Publicly Held Companies, Private & Public Sector Companies, Cooperatives, NGOs

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Vision & Mission Statement , Business Objectives, Strategic & Tactical Objectives, Corporate Social Responsibility

Business Objectives

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Economies & Diseconomies of Scale, Mergers & Acquisitions, Takeovers, Joint Ventures, Strategic Alliances, Franchising

IB Business Management HL - Questionbank

1.4 - Stakeholders

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

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Question 20

Question 21

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