1.5.1a Stakeholders and their objectives Quiz: Pearson Edexcel Business, Unit 5

The 20 questions

1. Which of these is a stakeholder of a business?

   • A shareholder who owns shares in the company
   • A passer-by who has never heard of the business and never will
   • A competing firm in another country with no trade links to the business
   • A government agency that only regulates unrelated sectors of the economy

2. Which stakeholder group is most likely to want the business to pay high dividends?

   • Local community groups, who want the business to pay for local parks
   • Government bodies, who want the business to avoid paying tax
   • Shareholders, who receive a share of profits
   • Employees, who are paid a fixed wage each month

3. Employees are most likely to be concerned with which of these objectives?

   • Reducing the amount of tax the company pays to the government
   • Maximising the number of shares that the company issues each year
   • Job security, fair pay and good working conditions
   • Increasing the number of competitors in the market to reduce prices

4. Which stakeholder is most concerned with the quality and price of a product?

   • Customers
   • Shareholders
   • Local community
   • Managers only, who want to set the business's annual budget

5. Which stakeholder would most likely want a business to pay its bills on time and offer fair terms?

   • Local residents
   • Customers
   • Pressure groups
   • Suppliers

6. A local community group wants a business to reduce its noise and traffic. Which objective does this group have?

   • To increase the business's profit margins by reducing costs
   • To buy shares in the business for a bargain price
   • To win government contracts for the business's products
   • To protect the quality of life of residents in the area

7. Which group of stakeholders are the business's managers?

   • Those who run the business day to day and make decisions on its behalf
   • Those who buy goods from the business as consumers in its shop and online
   • Those who lend money to the business at a fixed rate of interest over a set term
   • Those who make laws that apply to the business and its industry sector

8. Which stakeholder is most likely to be interested in whether a business complies with environmental laws?

   • Customers, who never consider the environment in their buying decisions
   • Shareholders, who only care about the value of their shares
   • Pressure groups, who campaign for environmental protection
   • Suppliers, who only care about the cost of raw materials

9. Which of these is a stakeholder objective that could conflict with shareholders' objectives?

   • Suppliers wanting to be paid on time for their deliveries
   • Customers wanting lower prices for the goods they buy
   • Employees wanting higher pay and better working conditions
   • Local community wanting to protect the environment

10. The government is a stakeholder in a business. What is its main objective?

    • To agree the prices charged to customers for each product
    • To set the business's marketing budget each year
    • To earn dividends from the business's share price
    • To collect taxes and ensure the business obeys the law

11. Which stakeholder group is most affected by a decision to close a factory?

    • Pressure groups, who will pay for the factory's closure
    • Suppliers, who will stop being paid for their goods
    • Employees, who could lose their jobs
    • Competitors, who will gain a share of the market

12. Which stakeholder group has a legal right to vote on the major decisions of a company?

    • Employees, who work for the company in any role
    • Customers, who buy the company's products
    • Suppliers, who sell raw materials to the company
    • Shareholders, who own the company

13. Which of these best describes a pressure group as a stakeholder?

    • A group of shareholders who meet to vote on the company's annual dividend and the board's pay policy
    • A group of suppliers who agree prices with the business's buyers and set the terms of trade credit
    • A group of employees who negotiate pay and conditions with the business through their union each year
    • A group that tries to influence business behaviour, such as on the environment or animal welfare

14. Which stakeholder is most likely to want a business to expand into new areas?

    • Shareholders, who may gain from growth in profit and share value
    • Local community, who wants the business to close and leave the area
    • Government, who wants the business to pay no tax in any future year
    • Pressure groups, who want the business to avoid any change at all

15. Which of these shows a conflict between two stakeholder groups?

    • Managers want to be paid while the government wants to raise taxes
    • Employees want higher wages while shareholders want higher dividends
    • Local community wants clean air while government wants to pay its staff
    • Customers want good service while suppliers want to sell more goods

16. Which stakeholder is most concerned about the business's ability to pay its debts?

    • Pressure groups, who campaign for better working conditions
    • Customers, who want to receive refunds for any faulty goods
    • Local residents, who want new roads to be built near the premises
    • Lenders and suppliers, who are owed money by the business

17. A business decides to move its production abroad to cut costs. Which stakeholder is most likely to be harmed?

    • Employees at the existing factory, who may lose their jobs
    • Government, which will receive no tax from the business at all
    • Suppliers, who will stop being owed any money by the business
    • Shareholders, who will always lose all of their investment

18. Which of these is a stakeholder that is directly affected by a business's pricing policy?

    • Customers, who pay the prices charged
    • Local council, which sets the price of local roads
    • Government, which sets the price of every product in the UK
    • Pressure groups, which set the price of raw materials

19. Shareholders are concerned about a plan to move a company's headquarters abroad. Which objective is most likely to concern them?

    • Competitors in markets that the business does not serve or plan to enter
    • Local councils in regions that are unrelated to the business and its sites
    • Pressure groups that have no link to the business's operations or its profits
    • Shareholders, who may question the effect on share value and control

20. Which stakeholder is most likely to want a business to pay higher wages?

    • Shareholders, who gain from low wage costs
    • Employees, who depend on wages for their income
    • Suppliers, who are paid less when wages are high
    • Government, which receives no tax from wages

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