Lesson 3.2.3

3.2.3 Understanding the role and importance of stakeholders Quiz: AQA Business, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.2.3, Understanding the role and importance of stakeholders: 20 multiple choice questions for the AQA Business (7132), Unit 2: Managers, leadership and decision making, written with Revision Ninja.

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The 20 questions

  1. Which group is an internal stakeholder of a business?

    • Banks and HM Revenue and Customs
    • Suppliers and competitors
    • Local residents and pressure groups
    • Employees and managers

  2. In stakeholder mapping, a stakeholder with high power and high interest should be:

    • Given minimal information to avoid conflict
    • Ignored, because they cannot change the outcome
    • Informed only through annual reports
    • Managed closely and kept fully involved in key decisions

  3. Stakeholder power refers to:

    • The amount of money a stakeholder has invested in the business
    • The ability of a stakeholder to influence the business's decisions or outcomes
    • The legal age of a stakeholder group
    • The number of employees a stakeholder manages

  4. Which is an example of a conflict between stakeholder needs?

    • Employees want training while the government wants tax paid on time
    • Customers want good quality while suppliers want prompt payment
    • Suppliers want stable orders while banks want loan repayments on schedule
    • Shareholders want higher dividends while employees want higher wages funded from the same profit

  5. Consultation with stakeholders means:

    • Telling stakeholders what has been decided after the event
    • Seeking their views before making a decision
    • Asking stakeholders to pay for decisions they did not make
    • Hiding information from stakeholders to avoid complaints

  6. Which is a method of communicating with employees?

    • Team briefings and staff meetings
    • Advertising campaigns aimed at new customers
    • Private letters sent to competitors
    • Quarterly press releases sent only to shareholders

  7. Stakeholder interest refers to:

    • How much the stakeholder earns from the business each year
    • The stake a shareholder holds in the company's shares
    • The interest rate charged on a stakeholder's loan to the business
    • How much a stakeholder cares about or is affected by the business's decisions

  8. A supermarket plans to close a store. Which stakeholder is most able to block the plan?

    • The shareholders, who receive dividends
    • The local council, which may refuse planning permission
    • The staff, who will lose their jobs
    • The residents, who buy groceries in the store

  9. A local community group has low power but high interest in a business's expansion. What approach is most appropriate?

    • Manage them closely with a seat on the board
    • Negotiate a binding contract with them
    • Keep them informed and consult them regularly
    • Ignore them completely, as they have no power

  10. A business makes profit of 1,000,000. Shareholders demand 400,000 as dividends and employees want 300,000 in extra wages. How much remains for reinvestment?

    • 700,000
    • 600,000
    • 100,000
    • 300,000

  11. A business asks employees for their views on a proposed change before it decides. This is an example of:

    • Consultation
    • Communication only
    • Redundancy planning
    • Delegation

  12. Which stakeholder groups share an overlapping need for the business's long-term survival?

    • Customers and banks, since both want lower prices
    • Employees and shareholders, since both depend on the business staying profitable
    • Suppliers and competitors, since both want the business to fail
    • Government and pressure groups, since both want higher profits

  13. What is the most likely consequence of ignoring a powerful pressure group?

    • Reputational damage and falling sales from a consumer boycott
    • Higher profit from lower consultation costs
    • Automatic exemption from all future regulation
    • Improved relations with competitors

  14. Shareholders are primarily interested in:

    • Planning permission for new sites
    • Returns on their investment, such as dividends and growth in the share price
    • Guaranteed employment for their families
    • Lower prices for the products they buy

  15. Which of these is an external stakeholder?

    • The bank providing the business's loan
    • The board of directors
    • The shop-floor employees
    • The finance director

  16. Evaluate: what is the strongest argument that stakeholder needs cannot always be fully satisfied?

    • Stakeholder goals often conflict, so the business must prioritise and trade off one group's interests against another's
    • Stakeholders never communicate with each other
    • Stakeholders have identical needs, so no trade-offs exist
    • Stakeholder needs only matter when a business is legally required to report them

  17. A business improves pay for employees by 200,000 and cuts dividends by 200,000. Which stakeholder trade-off does this illustrate?

    • Suppliers gain because of higher wages
    • Employees gain at shareholders' expense, showing the trade-off between stakeholder groups
    • Customers lose because prices must rise
    • Both groups gain, so no conflict exists

  18. Evaluate: should a business always consult every stakeholder?

    • Consultation should be equal for every stakeholder regardless of impact
    • Consultation is required by law only for public limited companies
    • Consultation is valuable but can delay decisions, so priority should go to high-power and high-interest stakeholders
    • Consultation should always be avoided because it slows decisions

  19. Why might a business find it difficult to manage relationships with geographically dispersed stakeholders?

    • Dispersed stakeholders cannot be consulted by any method
    • Dispersed stakeholders always have more power than local ones
    • Communication channels are harder to maintain, so messages may be inconsistent or slow
    • Geographic dispersion means stakeholders have no interests

  20. A business communicates poorly with employees about a restructuring. What is the most likely result?

    • Stronger legal protection from employees' unions
    • Rumours, lower trust and reduced motivation, which can lower productivity
    • Lower wage costs for the business immediately
    • Higher productivity because staff are less distracted

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