IB Business 1.4 MCQ

Under what circumstance will customers possess a high level of power? A. When there is a large number of substitute products B. When there are only a few, large clients in the market C. When there are a few suppliers in the market D. Both (A) and (B)

D

Which of the following is not an example of internal stakeholders? A. Customers B. Employees C. Shareholders D. Directors

A

What is a situation arises when directors wish for large bonuses and perks, such as company cars, while shareholders wish for higher dividends? A. Stakeholder conflict B. Crisis management C. Corruption D. Contingency planning

A

What level of effort should organisations commit to those stakeholders who have low power and low interest in the firm? A. Minimal B. Maximum C. Medium D. Ignore

A

How should firms behave with those stakeholders who have low power but high interest in the firm? A. Commit minimal effort B. Keep them informed C. Keep them satisfied D. Commit maximum effort

B

Which of the following is least likely to be a method used to resolve stakeholder conflicts? A. Arbitration B. Governmental intervention C. Compensation D. Improving effectiveness of communications

B

How should firms behave with those stakeholders who have high power but low interest in the firm? A. Commit minimal effort B. Keep them informed C. Keep them satisfied D. Commit maximum effort

C

Which of the following best describes the primary function of stakeholder analysis? A. To determine a firm or product's growth strategy B. To assess the current and future situation of a firm or product and the external factors that can affect it C. To determine the firm's key stakeholders based on their levels of power and interest D. To identify the driving and restraining forces of change

C

Which of the following is not an example of external stakeholders? A. Suppliers B. The government C. Shareholders D. Lenders

C