Who can be considered a stakeholder in a business?

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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!

A stakeholder in a business is defined as any individual or group that has a direct interest in the operations and outcomes of that business. This includes a wide range of parties, such as employees, managers, investors, customers, suppliers, and even the community where the business operates. Each of these stakeholders has a vested interest in the business and can affect or be affected by its activities, decisions, and performance.

The response indicating that anyone with a direct interest in the business is a stakeholder captures this broad perspective. It highlights the inclusive nature of stakeholder relationships, recognizing the importance of diverse interests in the decision-making process of a business. For instance, employees care about job security and working conditions, while suppliers are concerned about the continuity of orders. Similarly, communities may be invested in a business’s environmental practices or economic contributions. This comprehensive view is essential for a business striving to operate sustainably and ethically.

The other options present a limited view of who qualifies as a stakeholder, which overlooks the significant influence and interests of various groups in the business environment.

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