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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.
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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.
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RELATED QUESTIONS
Internal stakeholders do NOT consist 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.
Which of the following is the best example of a primary stakeholder?
Stakeholders who contribute to the business enterprise from outside the organisation are known as ______.
Who among the following is not an internal stakeholder?
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 |
What do you mean by external stakeholders?
Classify the six stakeholders of a firm into internal and external stakeholders.
Distinguish between Primary stakeholders and Secondary stakeholders.
