Advertisements
Advertisements
Question
As an external stakeholder, what interest would a company’s supplier have in a company?
Options
The supplier would want to be paid for the purchases made by the company on a timely basis.
The supplier would want to know that employees will continue to have jobs.
The supplier would want to know how much it will receive in dividends.
The supplier would want to know how much it will make from its investment.
Advertisements
Solution
The supplier would want to be paid for the purchases made by the company on a timely basis.
Explanation:
Suppliers are primarily concerned with the financial stability and payment practices of the company they supply. They want to ensure they receive timely payments for the goods or services they provide, which affects their cash flow and financial health.
APPEARS IN
RELATED QUESTIONS
Write any two differences between Internal stakeholders and External stakeholders.
Local community is an example of ______.
The primary stakeholders in a typical corporation are:
Stakeholders who are involved in business firms from within the organisation are known as ______ stakeholders. They consist of owners' shareholders and employees of the organisation.
Individuals who provide physical and mental efforts for an organisation are known as ______.
Which of the following are the external stakeholders in a company?
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | External stakeholder | i | Shareholders, employees |
| (b) | Government | ii | Creditors, suppliers |
| (c) | Internal stakeholders | iii | Pay taxes on time |
| (d) | Not the stakeholders | iv | Customers |
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Board of Directors | i | Reasonable return |
| (b) | Society | ii | Freedom to manage |
| (c) | Employees | iii | Help weaker section |
| (d) | Employers | iv | Fair remuneration |
What do you mean by external stakeholders?
Classify the six stakeholders of a firm into internal and external stakeholders.
