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 the organization that have an interest in or are affected by its actions. The Inland Revenue fits this because it is a government tax authority outside the company, whose role is to collect taxes and enforce tax law. It influences and is influenced by the business, but it isn’t part of the organization’s internal structure. In contrast, employees, managers, and owners/shareholders are inside the company’s framework: they work for it, manage it, or own it. So the Inland Revenue is the external stakeholder.

External stakeholders are groups outside the organization that have an interest in or are affected by its actions. The Inland Revenue fits this because it is a government tax authority outside the company, whose role is to collect taxes and enforce tax law. It influences and is influenced by the business, but it isn’t part of the organization’s internal structure. In contrast, employees, managers, and owners/shareholders are inside the company’s framework: they work for it, manage it, or own it. So the Inland Revenue is the external stakeholder.

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