Internal stakeholders may include which of the following?

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Enhance your preparation for the IGCSE Business Studies Test with flashcards and multiple choice questions. Every query is paired with tailored hints and explanations to boost your confidence. Prepare thoroughly for your exam!

Internal stakeholders are individuals or groups that are directly involved in the operations of a business and have a vested interest in its success. Owners and employees fall into this category because they are integral to the organization’s functioning. Owners, whether they are sole proprietors or part of a larger corporation, have a direct financial stake in the company’s performance. Employees contribute to day-to-day operations and are directly affected by company policies, performance, and culture.

The context of this question is crucial for understanding the broader landscape of stakeholders. Suppliers and customers, while critical to a company's success, are considered external stakeholders since they do not have a direct role in the business's internal workings. Investors and shareholders may also seem like internal stakeholders because they invest in the company, but they are often classified as external stakeholders as well, primarily because their engagement is typically at the financial and governance level rather than operational. Government regulators are likewise external stakeholders, as they oversee and enforce laws and regulations impacting the business but do not participate in its internal operations.

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