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Question
Which of the following is the best example of a primary stakeholder?
Options
An owner
A creditor
A key supplier
Customer
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Solution
An owner
Explanation:
Primary stakeholders are those directly involved with or affected by the business operations. An owner has a significant stake in the business as they have invested capital and are directly affected by the company's performance. Other examples of primary stakeholders include employees, customers, and suppliers, but the owner typically has the most substantial direct interest in the company's success.
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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.
Distinguish between Primary stakeholders and Secondary stakeholders.
