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IB Business Management · Introduction to business management

Stakeholders practice questions.

36 exam-style questions on Stakeholders — topic 1.4 of Introduction to business management in the IB Business Management syllabus — with answers and explanations. Samples below; the full set is free with an account.

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About this topic

Syllabus code
1.4
Subject
IB Business Management
Unit
1 · Introduction to business management
Questions
36 with worked answers
Question types
14 multiple-choice questions · 7 fill-in-the-gap questions · 7 true/false questions · 6 flashcards · 2 matching tasks
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Sample questions on Stakeholders

Which stakeholder group is most likely to pressure directors for higher short-term dividend payments rather than reinvestment of profits?

  • Employees
  • Local community
  • Shareholders
  • Suppliers

Answer: Shareholders

Shareholders own the business and receive dividends, so many prioritise short-term financial returns, which can conflict with managers who prefer to reinvest profits for long-term growth.

A manufacturer announces it will relocate production abroad to reduce labour costs. Which two stakeholder groups are MOST likely to come into direct conflict over this decision?

  • Shareholders and domestic employees
  • Customers and suppliers
  • The host-country government and consumers
  • Creditors and pressure groups

Answer: Shareholders and domestic employees

Shareholders benefit from lower costs and higher profits, while domestic employees face redundancy — a classic stakeholder conflict between financial returns and job security.

According to the stakeholder mapping (power–interest) model, how should a business manage a stakeholder group with high power but low interest?

  • Manage them closely
  • Keep them satisfied
  • Keep them informed
  • Monitor them with minimal effort

Answer: Keep them satisfied

High-power, low-interest groups must be kept satisfied so they do not become active opponents; 'manage closely' is reserved for groups with both high power and high interest.

Which stakeholder group is primarily interested in receiving prompt payment and securing regular repeat orders from a business?

  • Customers
  • The government
  • Shareholders
  • Suppliers

Answer: Suppliers

Suppliers depend on the business as a buyer, so their key interests are being paid on time and maintaining a steady flow of orders.

As an external stakeholder, a national government's main interests in a private-sector business typically include:

  • Tax revenue, jobs and compliance with laws
  • Dividend growth and capital gains
  • Job security and improved working conditions
  • Lower prices and better after-sales service

Answer: Tax revenue, jobs and compliance with laws

Governments seek tax receipts, jobs for citizens and adherence to laws and regulations; dividends concern shareholders, job security concerns employees, and prices concern customers.

A pressure group, such as an environmental campaign organisation, is best described as:

  • An internal stakeholder with voting rights at the AGM
  • A stakeholder motivated mainly by financial returns
  • An internal stakeholder representing employee interests
  • An external stakeholder seeking to influence business decisions

Answer: An external stakeholder seeking to influence business decisions

Pressure groups operate outside the business (external) and aim to change its behaviour — for example on pollution or working conditions — rather than to earn financial returns.

That was 6 of 36 Stakeholders questions.

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36 Stakeholders questions — free with an account. Spaced repetition, streaks and full exam simulations included.

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