Which of the following represents secondary stakeholders?

Prepare for the ETS Major Field Test Business Exam. Use comprehensive flashcards and multiple choice questions, each with detailed explanations. Ensure your success!

The correct choice identifies special interest groups that monitor corporate behavior as secondary stakeholders. Secondary stakeholders are those who do not directly engage in transactions with the company but can still impact or be impacted by its operations. Special interest groups often advocate for specific issues, such as environmental concerns or labor rights, and they work to influence corporate policies and practices from the outside.

This stands in contrast to primary stakeholders, who have direct economic interests in a firm. Employees and customers, for example, have a direct stake in the company's success and financial performance; they rely on the firm for their livelihoods and products, respectively. Government entities, while also playing a significant regulatory role, can be considered primary stakeholders in their capacity to enforce regulations, as they establish the framework within which a business operates. In summary, secondary stakeholders like special interest groups serve an essential function in holding firms accountable and shaping public perception without having a direct transactional relationship with them.

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