Ch-1 Stakeholders in Commercial

Organisation.
Short Answer Question: -
[2] Distinguish between ‘stakeholders’ and ‘shareholders’

Basis of Distinction Stakeholders Shareholders

Scope Stakeholder is a much wider
term than shareholders.
Applicability The term stake holders are
used in connection with all
business enterprises.
In joint stock company the
persons or group of people
who own the shares of
company are termed as
shareholders.
The term shareholders are
used only in connection with a
joint stock company.

[11] Distinguish between internal and external stakeholders.

[11]

Basis of Distinction Internal stakeholders External stakeholders

Position They operate from inside the They operate from outside the
organisation. organisation.
Role They actively participate in the They do not actively
management and working of participate in the management
the organisation. and working of the
organisation.
Example Employers and employees Suppliers, customers,
government
Long Question Answers: -
1]Explain the expectations of the government from a business organisation.

1]The expectations of the government from a business organisation are:

 To follow the law and regulations of the country.

 To pay all the taxes honestly, regularly and on time.
 To avoid corrupting public servants.
 To make proper use of scarce resources

2]Give any five points of difference between stakeholders and customers of a company.

2]

Point of Distinction Stakeholders Customers

Stakeholder Shareholders are stakeholders
as they have financial stake in
the company.
Investment Shareholders invest in the
company by buying its shares.
Dividend Shareholders receive dividend
from the company.
Risk They undertake risk of loss on
investment made in the
company.
Customers are not stakeholders
as they do not have any
financial stake in the company.
Customers do not invest money
in the company.
Customers do not receive any
dividend from the company.
Customers do not undertake
any risk as they do not invest in
the company.

3]Explain any five expectations of suppliers from a business organisation.

3]The five expectations of suppliers from a business organisation are:-

 Fair prices for the supplies.

 Regular and timely payment.
 Reasonable terms.
 Regular orders.
 Correct information about the company’s financial position
 Healthy and co-operative inter-business relationship