Lesson 2.2.1

2.2.1 Stakeholders Quiz: OCR Business, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.2.1, Stakeholders: 20 multiple choice questions for the OCR Business (H431), Unit 2: Business objectives and strategy, written with Revision Ninja.

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The 20 questions

  1. Which term describes an individual or group with an interest in a business's operations?

    • Director
    • Creditor
    • Shareholder
    • Stakeholder

  2. Which of the following is classified as an internal stakeholder of a business?

    • Government
    • Customer
    • Supplier
    • Employee

  3. What is typically the primary objective of a company's equity shareholders?

    • Higher wages
    • Tax revenue
    • High dividends
    • Low prices

  4. A council concerned about pollution from a factory acts as which type of stakeholder?

    • Equity owner
    • Commercial creditor
    • Local community
    • Internal management

  5. Which two stakeholder groups frequently conflict over employee wage increases versus profit margins?

    • Consumers and community
    • Lenders and government
    • Managers and workers
    • Suppliers and customers

  6. A business raises product prices by 15% to increase profits. Which stakeholder group suffers directly?

    • Suppliers
    • Tax authorities
    • Shareholders
    • Customers

  7. What term describes a business acting ethically towards society and the environment beyond legal minimums?

    • Social responsibility
    • Profit maximisation
    • Tax avoidance
    • Legal compliance

  8. In Mendelow’s matrix, how should stakeholders with high power and high interest be managed?

    • Monitor only
    • Keep satisfied
    • Manage closely
    • Keep informed

  9. A bank providing a long-term commercial loan to a business represents which stakeholder group?

    • External creditor
    • Internal manager
    • Equity shareholder
    • Public sector

  10. Why might a firm prioritise shareholder objectives over pressure group demands in the short term?

    • Eliminate competition
    • Protect dividend returns
    • Guarantee total sales
    • Avoid all taxes

  11. What is the primary purpose of a company's mission statement?

    • Set piece rates
    • Audit cash flows
    • Express core purpose
    • Calculate tax owed

  12. A supplier shortening credit terms from 90 to 30 days conflicts with which firm objective?

    • Environmental quality
    • Cash flow management
    • Dividend yield
    • Market share growth

  13. Which stakeholder group is primarily interested in tax revenue and business compliance with legislation?

    • Trade unions
    • Government
    • Shareholders
    • Competitors

  14. A retailer switching to fair-trade cocoa directly supports the objectives of which stakeholder group?

    • Local councils
    • Preference shareholders
    • Overseas suppliers
    • Commercial banks

  15. What is a direct strategic risk to a business that consistently ignores employee objectives?

    • Increased liquidity
    • Lower interest rates
    • Higher import tariffs
    • High labour turnover

  16. In Mendelow’s matrix, what is the recommended strategy for stakeholders with low power and high interest?

    • Ignore completely
    • Keep satisfied
    • Keep informed
    • Manage closely

  17. A business delays safety upgrades on equipment to lower costs. Which stakeholder group suffers?

    • Debenture holders
    • External auditors
    • Employees
    • Tax authorities

  18. What is a major financial drawback for a business implementing a comprehensive CSR strategy?

    • Increased operational costs
    • Higher income tax
    • Lower employee morale
    • Reduced customer loyalty

  19. What term describes a situation where meeting one stakeholder's objective directly hinders another's?

    • Vertical integration
    • Corporate synergy
    • Stakeholder conflict
    • Market equilibrium

  20. Why might a firm prioritise customer satisfaction over short-term profit maximisation?

    • Instant dividend tax
    • Reduced corporation tax
    • Zero variable costs
    • Long-term sustainability

All OCR Business quizzes