Cambridge International A Level · Business (9609)

Stakeholders in a business: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Stakeholders in a business.

9 questions23 marksFree, no account

Question 1

1 mark

Which of the following groups is classified as an internal stakeholder of a business?

Question 2

1 mark

In the relationship between a business and its stakeholders, which of the following best describes a responsibility of the government toward the business?

Question 3

1 mark

A business decides to invest heavily in environmentally friendly packaging, which will increase unit costs by \( 15\% \). Which stakeholder group is most likely to support this decision based on their responsibilities, even if it might lead to lower financial returns for them?

Question 4

1 mark

Why might the local community be considered an external stakeholder with significant influence over a business's decision to expand its manufacturing facilities?

Question 5

1 mark

A business is targeted by an environmental pressure group for its high carbon emissions. The management ignores the group until institutional shareholders (such as pension funds) threaten to divest. What does this most likely demonstrate about stakeholder influence?

Question 6

2 marks

Define the term internal stakeholder and provide one specific example of an internal stakeholder group found in a private sector business.

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Question 7

4 marks

Explain how a conflict of interest may arise between customers and shareholders if a business decides to significantly reduce product quality to lower costs and increase profit margins.

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Question 8

5 marks

Analyse why the relative importance of local pressure groups as a stakeholder might increase when a multinational business decides to construct a chemical plant that increases local carbon emissions by \( 25\% \).

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Question 9

7 marks

A multinational mining corporation is planning a new extraction project located near a rural village that relies on a local river for its water supply. The project will create \(500\) jobs but poses a risk of chemical runoff into the river.

(a) Analyse the likely conflicts between the aims of the local community and the shareholders regarding this project.
(b) Evaluate the importance of stakeholder accountability when a business makes strategic decisions that involve significant environmental and social externalities.

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