Bachelor of General Studies (BGS) Degree Practice Exam

Which of the following is not considered an external stakeholder of a firm?

1. Customers.

2. Managers.

3. Suppliers.

4. Investors.

The correct answer is: Managers.

In the context of stakeholder analysis, external stakeholders are individuals or groups that are not directly involved in the operations of a firm but are affected by or can affect its performance. This includes entities such as customers, suppliers, and investors, who each have an interest in the success and sustainability of the business. Managers, on the other hand, are typically considered internal stakeholders because they are directly involved in the day-to-day operations and decision-making processes of the firm. Their roles and responsibilities are integral to the internal structure and functioning of the organization. This distinction is crucial because internal stakeholders generally have a different perspective and set of interests compared to those outside the company. Thus, recognizing managers as internal employees marks them as distinct from external stakeholders.