Stakeholders in a business: Practice Questions

Which of the following would be classified as an external stakeholder of a large public limited company?

Which of the following describes a right of a business's suppliers rather than a responsibility?

In the context of stakeholders, which of the following best describes the 'Triple Bottom Line' approach to business objectives?

A manufacturing firm decides to automate its production line to improve efficiency and reduce costs. While this decision satisfies shareholders through higher projected profits, it leads to significant redundancies among the factory staff. This scenario best illustrates a conflict between which two stakeholder groups?

A furniture manufacturer is facing financial difficulties. To survive, it decides to delay payments to its timber suppliers by an extra 30 days. Which of the following best describes the likely reaction of the suppliers and its impact on the business?

Identify two external stakeholders of a business and state one primary interest for each.

A large airline decides to reduce its number of flights to cut carbon emissions. Identify one internal and one external stakeholder and explain how their objectives regarding this decision might conflict.

A public limited company decides to reduce its annual dividend to reinvest profits into environmentally friendly technology. Analyse the potential conflict between the objectives of shareholders and the local community in this scenario.

A large public limited company (plc) is considering a vertical backward merger with a major supplier of raw materials. To fund this, the board of directors proposes a significant reduction in the annual dividend payment to shareholders.

(a) Explain the impact of this merger on any two external stakeholder groups. (3 points)
(b) Evaluate the likely conflicts between the objectives of the shareholders and the management of the company resulting from this decision. (4 points)