Which of the following is an external stakeholder?

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Study for the Higher Business Management Test. Enhance your knowledge with multiple-choice questions, hints, and detailed explanations. Get fully prepared for your exam!

Multiple Choice

Which of the following is an external stakeholder?

Explanation:
External stakeholders are groups outside a business that have an interest in its activities and can be affected by its decisions. The Inland Revenue fits this because it is a government tax authority outside the organization, influencing and enforcing tax obligations rather than being part of the business itself. In contrast, employees, managers, and owners/shareholders are internal stakeholders since they are part of the company—owners through ownership and governance, managers in leadership roles, and employees through day‑to‑day work. Understanding this distinction helps explain how different groups interact with and impact a business.

External stakeholders are groups outside a business that have an interest in its activities and can be affected by its decisions. The Inland Revenue fits this because it is a government tax authority outside the organization, influencing and enforcing tax obligations rather than being part of the business itself. In contrast, employees, managers, and owners/shareholders are internal stakeholders since they are part of the company—owners through ownership and governance, managers in leadership roles, and employees through day‑to‑day work. Understanding this distinction helps explain how different groups interact with and impact a business.

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