Lesson 1.4

1.4 Stakeholder Engagement Quiz: NCFE Business & Enterprise, Unit 1

20 questions · by Revision Ninja

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This free Stakeholder Engagement quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 1: Entrepreneurship. It covers lesson 1.4, Stakeholder Engagement, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. Employees are internal stakeholders. What do they most want from the business?

    • A bigger dividend, and a capital gain when the shares are sold.
    • Job security, fair pay and chances to develop new skills.
    • Prompt payment of invoices and steady repeat orders.
    • Lower prices and better quality from the products they buy.

  2. Ravi runs a sandwich shop as a sole trader. Which statement about his position is correct?

    • He must file his yearly accounts at Companies House.
    • He must share control and the profits with a co-owner.
    • His liability for the debts is limited to what he invested.
    • He keeps the profit and is personally liable for the debts.

  3. Two friends set up a partnership. Which statement best describes how it works?

    • A written deed is required by law before trading starts.
    • The partners' liability is limited to their share capital.
    • They share the profits, losses and control of the business.
    • The firm becomes a separate legal body once it registers with Companies House.

  4. Why do customers count as a powerful external stakeholder group for a cafe?

    • They can hold back deliveries until old bills are paid.
    • They can vote the directors out at the annual meeting.
    • They can withdraw the overdraft the cafe relies on.
    • They decide the level of demand, and so the cafe's sales.

  5. What is the main concern of the shareholders of a public limited company?

    • The profit made and the return they get on their investment.
    • Whether the firm pays its invoices on time and reorders.
    • The wages, working conditions and job security the firm offers staff.
    • Whether the firm pays its taxes and obeys employment law.

  6. A supermarket opens a new store. What does the local community, as a stakeholder, mainly want from it?

    • Regular overtime pay and a clear route to promotion.
    • Large orders and prompt payment for goods supplied.
    • A rising share price and a growing yearly dividend.
    • Jobs nearby, and little noise, litter or extra traffic.

  7. In what way is the government a stakeholder in a business?

    • It sets the rules and collects the tax the firm must pay.
    • It approves the appointment of the firm's directors.
    • It takes a share of the profit as corporation tax, so it part-owns the firm.
    • It lends the start-up capital that new firms need.

  8. A bank lends £40,000 to a start-up. As a stakeholder, what does the bank mainly want?

    • The loan repaid on time, with the interest it charges.
    • A dividend from the yearly profit, rising as the firm grows.
    • A seat on the board, with a vote on the firm's strategy.
    • Growth in the value of the shares it holds in the firm.

  9. Why does a business work hard to keep a good relationship with its suppliers?

    • It lowers the interest the bank charges on the overdraft.
    • It lifts staff morale and cuts the labour turnover rate.
    • Reliable delivery, and better credit terms and prices.
    • It lifts the share price, so shareholders make a capital gain.

  10. A business consults its stakeholders before making a big change. What is the main benefit?

    • Lower unit costs as output rises, from economies of scale.
    • Faster decisions, because fewer people are consulted.
    • Fewer objections later, and a smoother, cheaper rollout.
    • A stronger brand, letting the firm charge a premium price.

  11. Which pair contains two internal stakeholders of a business?

    • Employees and their customers
    • The employees and the owners
    • Shareholders and the government
    • Suppliers and local residents

  12. Which of these is an external stakeholder of a supermarket chain?

    • The directors who run the chain
    • Managers of its distribution depot
    • Checkout staff working in stores
    • Families living near its stores

  13. Shareholders in a limited company are classed as external stakeholders. Why?

    • The company is a separate legal body from them
    • They are hired to manage the company day to day
    • They are paid a salary by the company each month
    • They sell goods and services to the company

  14. What is usually the main interest of employees as stakeholders?

    • Low prices and good quality products
    • A return on the money they have invested
    • Fair pay, job security and safe conditions
    • Being paid on time for goods delivered

  15. What matters most to the owner of a small sole trader firm?

    • That the firm survives and makes a profit
    • That the firm pays its loan back on time
    • That the firm keeps its prices very low
    • That the firm hires more staff each year

  16. Why is the local community around a factory treated as a stakeholder?

    • Residents may work there and face its traffic
    • Residents supply the parts the factory uses
    • Residents provide the loans the factory relies on
    • Residents set the tax the factory has to pay

  17. Which of these best describes the government's stake in a business?

    • It buys the firm's products and wants low prices
    • It taxes the profits and wants jobs created
    • It supplies parts and wants to be paid promptly
    • It lends money to the firm and wants it repaid

  18. A bank has lent money to a shop. What will the bank care about most?

    • That local people are hired for the jobs
    • That the loan and interest are paid back
    • That the workers are given a pay rise
    • That the shop stays open late at weekends

  19. How can a business benefit from listening to its employees?

    • The bank lowers the interest on its loan
    • Customers post better reviews of the shop
    • Suppliers agree to cut their unit prices
    • Staff feel valued, so fewer of them leave

  20. Which situation shows a conflict between owners and employees?

    • Locals want quiet; the firm wants night shifts
    • Staff want a higher wage; owners want profit
    • Customers want low prices; suppliers want more
    • The bank wants repaying; owners want to expand