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23:[["$","$L32",null,{"feature":"flashcards"}],"$L33",["$","$L34",null,{"href":"/gcse/business/aqa/main-stakeholders-of-businesses/flashcards","label":"1.4.1 Main stakeholders of businesses","subjectCode":"gcse_business__aqa","surface":"flashcards"}],["$","$L35",null,{"runner":["$","div",null,{"className":"min-h-0 flex-1 overflow-hidden bg-background","children":["$","$L36",null,{"decks":[{"id":"78e2a397-0562-4ed4-8952-87815f09847f","title":"1.4.1 Main stakeholders of businesses Flashcards","topicId":"dc50b078-0b75-45ce-93ce-653ff4ace9e0","topicSlug":"main-stakeholders-of-businesses","cards":[{"id":"d7cd760a-ed8c-4e3e-89e3-5116fb613158","cardType":"basic","points":2,"front":"What makes an individual or group a stakeholder in a business?","back":"A business decision changes something they care about or affects them.","mcqOptions":[{"text":"A business decision changes something they care about or affects them.","correct":true,"explanation":"Stakeholders are individuals or groups affected by business decisions, or whose interests those decisions affect. They do not need to own the business to have a stake in it."},{"text":"They work for the business and receive wages.","correct":false,"explanation":"Working for a business describes employees, one stakeholder group, rather than the general test. Stakeholders can also include customers, suppliers, owners and local residents affected by decisions."},{"text":"They buy shares in the business and receive dividends.","correct":false,"explanation":"Buying shares describes shareholders only, not every stakeholder. The correct test is whether a business decision affects someone or something they care about."},{"text":"They buy goods from the business on a regular basis.","correct":false,"explanation":"Regular purchasing identifies a customer, but stakeholders are broader than customers. Anyone affected by decisions, including employees and the local community, can be a stakeholder."}]},{"id":"55439b3b-18df-4b98-ad8e-b83d5d2219a7","cardType":"basic","points":1,"front":"Does someone need to own part of a business to be its stakeholder?","back":"No - customers and nearby residents can be stakeholders without ownership.","mcqOptions":[{"text":"No - customers and nearby residents can be stakeholders without ownership.","correct":true,"explanation":"Stakeholders include groups affected by the business, not just its owners. Customers are affected by its products and residents may be affected by local jobs, traffic or noise."},{"text":"Yes - only shareholders can be stakeholders because they own the business.","correct":false,"explanation":"This confuses stakeholders with shareholders. Ownership makes someone a stakeholder, but customers, employees, suppliers and nearby residents can also be affected without owning shares."},{"text":"Yes - a stakeholder must invest money in the business.","correct":false,"explanation":"Investing money applies to owners and shareholders, not all stakeholders. A customer or local resident can have interests affected by the business despite making no investment."},{"text":"No - only employees can be stakeholders without ownership.","correct":false,"explanation":"Employees are not the only non-owning stakeholders. Customers, suppliers and the local community can also be affected by business decisions without owning any part of it."}]},{"id":"f160f2d6-ce45-433b-a047-1e9b46e2e16c","cardType":"basic","points":3,"front":"What are the five main stakeholder groups of a business?","back":"

Owners and shareholders
Employees
Customers
Suppliers
Local community

","mcqOptions":[{"text":"

Owners and shareholders
Employees
Customers
Suppliers
Local community

","correct":true,"explanation":"These five groups have direct interests in, or can be affected by, business decisions. Owners provide capital, employees work there, and the other groups interact with or live near it."},{"text":"

Managers and shareholders
Employees
Customers
Suppliers
Local community

","correct":false,"explanation":"Managers are normally included within employees rather than replacing owners and shareholders. The main ownership stakeholder group is owners and shareholders, alongside employees, customers, suppliers and the local community."},{"text":"

Owners and shareholders
Employees
Competitors
Suppliers
Local community

","correct":false,"explanation":"Competitors may react to a business but are not one of the five main stakeholder groups here. Customers have a direct purchasing relationship and are the correct group in this list."},{"text":"

Owners and shareholders
Employees
Customers
Government
Local community

","correct":false,"explanation":"Government can be an external stakeholder, but this list asks for the five main groups. Suppliers are essential because they provide the materials, stock or services the business needs."}]},{"id":"87db716d-5c60-4eb8-bdb9-758a63b433dc","cardType":"basic","points":1,"front":"Why are owners and shareholders stakeholders?","back":"They invest money in the business and own it.","mcqOptions":[{"text":"They invest money in the business and own it.","correct":true,"explanation":"Owners and shareholders supply capital and have ownership rights in the business. Their investment and potential financial return mean business decisions directly affect their interests."},{"text":"They work full-time in the business and receive wages.","correct":false,"explanation":"Working in return for wages describes employees, not necessarily owners or shareholders. Owners and shareholders are stakeholders because they invest money and own part of the business."},{"text":"They buy goods from the business and expect value.","correct":false,"explanation":"Buying goods and expecting value describes customers. Owners and shareholders have a different interest: they invest money and own the business or a share of it."},{"text":"They provide materials to the business and expect payment.","correct":false,"explanation":"Providing materials and expecting payment describes suppliers. Owners and shareholders are stakeholders because they have invested capital and hold ownership in the business."}]},{"id":"eb25f717-684e-42b5-893a-201a0982b347","cardType":"basic","points":1,"front":"What risk do owners and shareholders carry if the business fails?","back":"They may lose the money they invested.","mcqOptions":[{"text":"They may lose the money they invested.","correct":true,"explanation":"Owners and shareholders risk the capital they put into a business. If it fails, their shares may become worthless and they may not recover their investment."},{"text":"They may lose their monthly wages.","correct":false,"explanation":"Losing wages is primarily a risk for employees when a business closes. Owners and shareholders carry the risk of losing the money they invested."},{"text":"They may lose their regular orders.","correct":false,"explanation":"Losing regular orders is a risk faced by suppliers that sell to the business. Owners and shareholders risk losing their invested money if the business fails."},{"text":"They may lose their choice of products.","correct":false,"explanation":"Reduced product choice is a possible customer concern if a business closes. The owners' and shareholders' financial risk is losing the capital they invested."}]},{"id":"3e5c0e19-9bb6-4860-85e4-84c7615c1230","cardType":"basic","points":1,"front":"What do employees provide to a business in return for pay?","back":"Their work.","mcqOptions":[{"text":"Their work.","correct":true,"explanation":"Employees contribute their labour, skills and time to help the business operate. In exchange, the business usually pays them wages or salaries."},{"text":"Their capital.","correct":false,"explanation":"Capital is money invested by owners or shareholders to finance the business. Employees normally provide work, skills and time in return for pay."},{"text":"Their custom.","correct":false,"explanation":"Custom means purchasing from a business, which is what customers provide. Employees provide work in return for wages or salaries."},{"text":"Their materials.","correct":false,"explanation":"Materials are supplied by suppliers for the business to use or sell. Employees contribute their work and skills in return for pay."}]},{"id":"acafaa56-1dd7-4749-85db-b3b8a96662a7","cardType":"basic","points":1,"front":"Who are a business's customers?","back":"The people or organisations that buy its goods or services.","mcqOptions":[{"text":"The people or organisations that buy its goods or services.","correct":true,"explanation":"Customers are purchasers of a business's goods or services. Their demand creates sales revenue, so product quality, price and service can affect them."},{"text":"The people or organisations that work for the business.","correct":false,"explanation":"People who work for the business are employees, even if they may also buy its products. Customers are defined by buying its goods or services."},{"text":"The people or organisations that provide goods or services.","correct":false,"explanation":"Providing goods or services to the business describes suppliers. Customers are on the buying side of the relationship and purchase the business's output."},{"text":"The people or organisations that own shares in the business.","correct":false,"explanation":"Owning shares identifies shareholders, who have invested in the business. Customers are people or organisations that buy the business's goods or services."}]},{"id":"b142df1a-2249-461b-857c-a68825e89103","cardType":"basic","points":1,"front":"What do suppliers provide to a business?","back":"The materials, stock or services it needs.","mcqOptions":[{"text":"The materials, stock or services it needs.","correct":true,"explanation":"Suppliers provide the inputs a business needs to operate, make products or serve customers. These can include raw materials, stock, components and specialist services."},{"text":"The work, skills or time it needs.","correct":false,"explanation":"Work, skills and time are provided by employees in return for pay. Suppliers provide external inputs such as materials, stock or services."},{"text":"The money, loans or capital it needs.","correct":false,"explanation":"Money, loans and capital are provided by investors or lenders, rather than suppliers. Suppliers provide materials, stock or services needed by the business."},{"text":"The orders, revenue or feedback it needs.","correct":false,"explanation":"Orders and revenue come from customers, while feedback may also come from them. Suppliers provide the materials, stock or services required to operate."}]},{"id":"022d0e86-8a9e-4213-9598-fb912650208b","cardType":"basic","points":2,"front":"Why can the local community be a stakeholder even if residents never buy from the business?","back":"Business activity can affect local residents through jobs, traffic or noise.","mcqOptions":[{"text":"Business activity can affect local residents through jobs, traffic or noise.","correct":true,"explanation":"Residents can be affected by the employment a business creates and by effects such as increased traffic or noise. Buying from the business is not required to be a stakeholder."},{"text":"Business activity can affect local residents through prices, quality or choice.","correct":false,"explanation":"Prices, quality and product choice are mainly customer concerns. The local community is more directly affected by local impacts such as jobs, traffic and noise."},{"text":"Business activity can affect local residents through wages, training or promotion.","correct":false,"explanation":"Wages, training and promotion are employee concerns. Local residents can be stakeholders because business activity may affect jobs, traffic or noise in their area."},{"text":"Business activity can affect local residents through profits, dividends or share prices.","correct":false,"explanation":"Profits, dividends and share prices are ownership concerns. The local community is affected by consequences in its area, including jobs, traffic and noise."}]},{"id":"48ffa823-1ee1-44c4-a078-6af2e7fc1223","cardType":"basic","points":1,"front":"Which two main stakeholder groups are internal?","back":"Owners and employees.","mcqOptions":[{"text":"Owners and employees.","correct":true,"explanation":"Internal stakeholders are within the business itself. Owners have ownership of it, while employees work in it; customers, suppliers and the community are external."},{"text":"Customers and suppliers.","correct":false,"explanation":"Customers and suppliers interact with the business from outside it, so they are external stakeholders. The internal groups are owners and employees."},{"text":"Employees and customers.","correct":false,"explanation":"Employees are internal because they work in the business, but customers are external because they buy from it. Owners and employees are the two internal groups."},{"text":"Owners and suppliers.","correct":false,"explanation":"Owners are internal because they own the business, but suppliers are external because they provide inputs from outside. Employees are the other internal stakeholder group."}]},{"id":"221cdd46-a611-4caa-ae8e-8d32a2b72544","cardType":"basic","points":2,"front":"What test identifies whether a stakeholder is internal?","back":"Ask whether the group owns the business or works in it.","mcqOptions":[{"text":"Ask whether the group owns the business or works in it.","correct":true,"explanation":"Ownership or employment places a stakeholder inside the business, making them internal. Groups that buy from, supply, regulate or live near it are external."},{"text":"Ask whether the group buys from the business or supplies it.","correct":false,"explanation":"Buying from or supplying a business identifies external relationships, not internal status. A stakeholder is internal when it owns the business or works in it."},{"text":"Ask whether the group pays tax to the government or receives it.","correct":false,"explanation":"Tax payments do not determine whether a stakeholder is internal. The relevant test is whether the group owns the business or works in it."},{"text":"Ask whether the group lives near the business or visits it.","correct":false,"explanation":"Living near or visiting a business may identify community members or customers, both external stakeholders. Internal stakeholders own the business or work in it."}]},{"id":"6c1d0d6b-ce3c-4e0d-acb6-d4b8bece5ea4","cardType":"basic","points":2,"front":"Why are customers, suppliers and the local community external stakeholders?","back":"They are outside the business and do not own or work in it.","mcqOptions":[{"text":"They are outside the business and do not own or work in it.","correct":true,"explanation":"Customers, suppliers and the local community have relationships with the business but are not part of its ownership or workforce. That makes them external stakeholders."},{"text":"They are inside the business and receive wages from it.","correct":false,"explanation":"Receiving wages and being inside the business describes employees. Customers, suppliers and the local community are external because they do not own or work in it."},{"text":"They are outside the business but own shares in it.","correct":false,"explanation":"Shareholders can be external in some classifications, but this statement does not describe customers, suppliers and the local community. These groups do not own or work in the business."},{"text":"They are inside the business and invest money in it.","correct":false,"explanation":"Investing money and ownership describe owners or shareholders, not customers, suppliers or the community. Those groups are outside the business and do not own or work in it."}]},{"id":"17716f70-6338-446f-9d69-9534136742dd","cardType":"basic","points":2,"front":"Why is the government often classified as an external stakeholder?","back":"

HMRC takes tax from profits.
The local council decides planning applications.

","mcqOptions":[{"text":"

HMRC takes tax from profits.
The local council decides planning applications.

","correct":true,"explanation":"Government bodies affect businesses from outside the organisation. HMRC collects tax on profits, while local councils can approve or reject planning applications affecting business premises."},{"text":"

HMRC pays wages to employees.
The local council supplies raw materials.

","correct":false,"explanation":"Paying wages is the employer's role and supplying raw materials is a supplier's role. Government is external because HMRC collects tax and councils decide planning applications."},{"text":"

HMRC decides planning applications.
The local council takes tax from profits.

","correct":false,"explanation":"This swaps the roles of two government bodies. HMRC collects tax from profits, while the local council deals with planning applications for local development."},{"text":"

HMRC sells goods to customers.
The local council owns shares in the business.

","correct":false,"explanation":"Selling goods is the business's role and owning shares is a shareholder's role. Government is an external stakeholder through tax collection and planning decisions."}]},{"id":"8308aa7a-c926-42c5-881a-96bf55ddf371","cardType":"basic","points":2,"front":"How should someone with two stakeholder roles be classified?","back":"Classify each role separately, such as employee and shareholder.","mcqOptions":[{"text":"Classify each role separately, such as employee and shareholder.","correct":true,"explanation":"One person can have more than one relationship with a business. Their employee role and shareholder role should each be considered separately when identifying stakeholder interests."},{"text":"Classify the most important role, such as employee and shareholder.","correct":false,"explanation":"Choosing one supposedly most important role can hide conflicting interests. The correct approach is to classify each role separately, such as employee and shareholder."},{"text":"Classify them as internal only, such as employee and shareholder.","correct":false,"explanation":"A person may have an internal employee role and a separate ownership role, so one label alone is inadequate. Each stakeholder role should be classified separately."},{"text":"Classify them as external only, such as employee and shareholder.","correct":false,"explanation":"An employee works within the business, so treating the person as external only ignores that role. Each role, including employee and shareholder, must be classified separately."}]},{"id":"c183f936-b206-4ba8-a9bd-aabf76e6d962","cardType":"cloze","points":null,"front":"A person can be a stakeholder without owning any [ ] of the business.","back":"A person can be a stakeholder without owning any part of the business.","mcqOptions":[{"text":"part","correct":true,"explanation":"A stakeholder does not need ownership. Someone can be affected by a business's decisions without owning any part of it, as with customers or nearby residents."},{"text":"profit","correct":false,"explanation":"Profit is money remaining after costs, not something a person owns as a share of a business. The sentence refers to owning any part of the business."},{"text":"product","correct":false,"explanation":"A product is a good or service sold by a business, rather than a unit of ownership. The correct term is part, since ownership is not required for stakeholder status."},{"text":"employee","correct":false,"explanation":"An employee is a person who works for the business, not something that can be owned. The sentence needs part, referring to ownership of the business."}]},{"id":"1b575c91-848c-4cc8-9315-29e03ef410cf","cardType":"cloze","points":null,"front":"The two internal stakeholder groups are [ ] and employees.","back":"The two internal stakeholder groups are owners and employees.","mcqOptions":[{"text":"owners","correct":true,"explanation":"Owners and employees are internal stakeholders because they are within the business through ownership or employment. Customers, suppliers and the local community are external."},{"text":"customers","correct":false,"explanation":"Customers buy from the business but do not own or work in it, so they are external stakeholders. The other internal group alongside employees is owners."},{"text":"suppliers","correct":false,"explanation":"Suppliers provide materials, stock or services from outside the business. The two internal stakeholder groups are owners, who own it, and employees, who work in it."},{"text":"residents","correct":false,"explanation":"Nearby residents belong to the local community and are external stakeholders, even when business activity affects them. Owners are internal alongside employees because they own the business."}]},{"id":"9de36271-5419-4913-8382-b18c44d7811a","cardType":"cloze","points":null,"front":"Customers, suppliers and the local community are [ ] stakeholders.","back":"Customers, suppliers and the local community are external stakeholders.","mcqOptions":[{"text":"external","correct":true,"explanation":"These groups are outside the business, although their decisions or experiences can affect it. Customers buy from the business, suppliers provide resources, and the local community is affected by its activities."},{"text":"internal","correct":false,"explanation":"This confuses people inside the business with groups affected from outside it. Employees and managers are internal stakeholders; the correct classification for these three groups is external stakeholders."},{"text":"financial","correct":false,"explanation":"This describes a possible interest in money rather than where the stakeholder is located. Customers, suppliers and the local community are outside the business, so they are external stakeholders."},{"text":"ownership","correct":false,"explanation":"Ownership is associated with people who possess part of a business, not all groups affected by it. These groups do not necessarily own the business and are external stakeholders."}]},{"id":"f2958d51-fbb0-4ca8-8243-5bfefdf43246","cardType":"cloze","points":null,"front":"A supplier delivering to a business every day is still an [ ].","back":"A supplier delivering to a business every day is still an external stakeholder.","mcqOptions":[{"text":"external stakeholder","correct":true,"explanation":"A supplier is separate from the business, even when deliveries happen daily. The frequency of the relationship does not change the supplier’s position outside the organisation, so it remains an external stakeholder."},{"text":"internal stakeholder","correct":false,"explanation":"Regular contact does not make a supplier part of the organisation. Internal stakeholders work within the business, whereas a supplier remains outside it and is therefore an external stakeholder."},{"text":"employee stakeholder","correct":false,"explanation":"A supplier may work closely with staff but does not become an employee through frequent deliveries. The supplier is a separate organisation or individual and is an external stakeholder."},{"text":"shareholder","correct":false,"explanation":"Supplying goods does not mean owning a portion of the business. Shareholders invest in or own shares, while suppliers operate outside the business and are external stakeholders."}]},{"id":"f8d1adf2-ecc6-4528-8cf5-96608bea44d3","cardType":"cloze","points":null,"front":"Every shareholder is a stakeholder, but not every stakeholder is a [ ].","back":"Every shareholder is a stakeholder, but not every stakeholder is a shareholder.","mcqOptions":[{"text":"shareholder","correct":true,"explanation":"A shareholder owns shares in the business, making them a stakeholder with a financial interest. Other stakeholders, such as employees, customers and suppliers, can be affected without owning shares."},{"text":"employee","correct":false,"explanation":"Employees are one type of stakeholder, but they are not the only possible stakeholders. The missing term refers specifically to someone who owns shares, so the correct answer is shareholder."},{"text":"customer","correct":false,"explanation":"Customers can be stakeholders because they buy products, but buying from a business does not necessarily involve ownership. The statement is specifically contrasting stakeholders with shareholders."},{"text":"supplier","correct":false,"explanation":"Suppliers have an interest in the business because they provide goods or services, but they do not automatically own part of it. The correct ownership term is shareholder."}]},{"id":"847cb147-b07a-44d7-a02e-0d28b5237461","cardType":"cloze","points":null,"front":"The local community is more important to a quarry or airport than to a small [ ].","back":"The local community is more important to a quarry or airport than to a small online-only retailer.","mcqOptions":[{"text":"online-only retailer","correct":true,"explanation":"A quarry or airport creates substantial local effects such as noise, traffic or pollution. An online-only retailer usually has little physical impact on its surrounding community, making that stakeholder less important."},{"text":"high-street supermarket","correct":false,"explanation":"A supermarket has a physical site that can affect local traffic, employment and competing shops. The comparison should be with a business having minimal local presence: an online-only retailer."},{"text":"manufacturing factory","correct":false,"explanation":"A factory can significantly affect local employment, traffic, noise and pollution, so its community stakeholder is likely important too. The correct contrast is a business operating without a local physical site."},{"text":"construction company","correct":false,"explanation":"Construction projects often create major temporary effects on nearby residents, roads and the environment. That makes the local community relevant, unlike the much smaller local impact of an online-only retailer."}]}]}],"examCountdown":{"examDate":"2027-05-12","paperLabel":"Paper 1"},"heading":"1.4.1 Main stakeholders of businesses","title":"1.4.1 Main stakeholders of businesses Flashcards","topbar":{"backHref":"/gcse/business/aqa/flashcards"},"topicSidebar":"$L37"}]}],"topicId":"dc50b078-0b75-45ce-93ce-653ff4ace9e0","walled":"$L38"}],"$L39","$L3a"]