Which of the following is not considered a stakeholder of an organization? A. creditors B. lende

Which of the following is not considered a stakeholder of an...

Key Concepts

Stakeholders

Stakeholders are groups or individuals who have an interest in the actions and outcomes of an organization. They can influence or be influenced by the company's operations, decisions, and performance, and typically include both internal parties (such as employees) and external parties (such as creditors, lenders, and community residents).

Primary vs. Secondary Stakeholders

Primary stakeholders are those that are directly involved with or impacted by an organization’s activities and hold a significant stake in its performance, like employees, creditors, and lenders. Secondary stakeholders, on the other hand, have a more peripheral interest in the organization and are less directly affected, such as community members, while entities like businesses in other industries generally do not fall under the stakeholder category as their interest is minimal.

Transcript

00:01 Okay, so let's start our current solution, okay? so first of all, we will understand the meaning of stakeholder, then we will move to our main solution, okay? so stakeholder.

00:27 It refers to a person or group of persons or any legal entity which is holding any type of financial interest in the particular.

01:44 Organization okay so what we have in front of us that the definition refers which is which is stating the meaning of stakeholder okay so stakeholder refers to a person or a group of persons or any type of legal entity so we understand the meaning of person group of persons of course but what is a legal entity legal entity you can understand let's say a sole proprietorship a partnership firm or a company, established as per the statute or local regulation of that country, which is holding any type of financial interest, any type of financial interest in the particular organization.

02:40 Let's say financial interest means like let's suppose a lender.

02:46 A lender means a person who gives loan to a business will likely to have a financial interest in that company okay the employees of the company will have a financial interest under which they are employed okay creditors who have advanced their money to a particular company will have financial interest in those companies okay so please note down this definition so to get a clear meaning of the question as well as the solution we have derived now the question has asked us which of the following is not a clear meaning of the stakeholder okay so out of the out of the options available businesses another industry will not will not have a will not be considered as a stakeholder okay so so the correct choice for for problem is e, okay? why e? because all of the options except e will have a financial interest in the organization like lenders, creditors, employees, okay, and another one also but not the business let's suppose there is a company operating in cement industry like it is dealing in cement industry, okay? but there is a b company which provides restaurant services.

04:51 So you can understand that b company will never ever likely to compete with a company.

04:58 Why that so? because their businesses are two different...

Please give Ace some feedback