Future Business Leaders of America (FBLA) Accounting Practice Test

Who are stakeholders in an organization?

1. Only the shareholders of the business

2. Individuals or groups interested in the actions of an organization

3. Only management and employees

4. The general public who is unaware of the activities

The correct answer is: Individuals or groups interested in the actions of an organization

Stakeholders in an organization are defined as individuals or groups that have an interest in the actions, decisions, and performance of that organization. This broad definition encompasses not only shareholders but also includes employees, customers, suppliers, creditors, and even members of the community where the organization operates. Stakeholders can impact and be impacted by the organization’s activities and strategies, making them integral to understanding how a business functions within its environment. The correct answer recognizes the inclusive nature of stakeholders, highlighting that it is not limited to just those who own shares or have a managerial role, but rather anyone who can be affected by or can influence the organization. Understanding this concept is crucial as it helps in identifying the various interests that a business must balance to ensure long-term sustainability and ethical practices.