BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Stakeholders are individuals, groups or organisations directly involved with, or indirectly affected by, a project, product, service or enterprise. As such, stakeholders likewise impact why and how a company does business.
Detailed explanation-2: -For instance, it is easy to see how shareholders are affected by firm strategies-their wealth either increases or decreases in correspondence with the firm’s actions. Other parties have economic interests in the firm as well, such as parties the firm interacts with in the marketplace, including suppliers and customers.
Detailed explanation-3: -The activities of a business will affect all stakeholders but some might be more affected than others. For example, if a retail business makes the decision to expand by opening a new store, this will have an impact on all the different stakeholders.
Detailed explanation-4: -The correct answer is e. It has a meaningful stake in the organization’s performance.