Which of the following is NOT an external stakeholder?

Prepare for the AAT Internal Accounting Systems and Controls Level 4 Exam. Study with multiple choice questions and detailed explanations to boost your success. Get exam-ready!

In the context of stakeholders in a business, external stakeholders are those individuals or groups that do not work directly within the organization but are affected by its operations. These generally include customers, investors, and the public, all of whom have a vested interest in the company's performance, products, or services.

Employees, on the other hand, are considered internal stakeholders. They work within the organization and have a direct relationship with it, contributing to its productivity and success. Since employees have a direct role in the functioning and culture of the company, their interests and well-being are primarily aligned with the internal dynamics of the organization rather than external influences.

Recognizing this distinction between internal and external stakeholders is crucial in understanding how different groups interact with a business and how their interests may align or conflict with each other. This understanding helps in effective communication and management strategies within an organization.

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