Pearson Edexcel International GCSE Business: Chapter 1 - Business Activity and Stakeholders

Stakeholder

An individual or group with an interest in a business who can affect and is affected by the decisions of a business.

Internal Stakeholders

Individuals or groups who are directly part of the business organization, including owners, employees, and managers.

Owners

Internal stakeholders who invest time and money into a business and seek profit or dividends.

Employees

Internal stakeholders who work for a business and want pay, training, and job security.

Managers

Internal stakeholders who control business resources and answer directly to the owners.

External Stakeholders

Outside individuals or groups that depend on and are affected by business decisions, such as financiers, suppliers, local communities, government, and customers.

Financiers

External stakeholders who lend money to a business and seek loan repayment and business success.

Suppliers

External stakeholders who provide inputs to a business and want regular orders and prompt payment to support cash flow.

Local Community

An external stakeholder group that gains employment opportunities from a business but may experience disruption.

Government

An external stakeholder that values business activity for providing jobs, generating wealth, and contributing tax revenue.

Customers

External stakeholders who buy the output of a business and demand quality products at a fair price.

Output

A feature of business activity consisting of the tangible goods produced or intangible services provided by a firm.