Which one of the following is generally considered to be a nonmarket stakeholder of business?

Chapter 1Market stakeholders include nongovernmental organizations and business support groups.

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A business is any organization that is engaged in making a product or providing a service for a profit.

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What stakeholder group(s) can exercise legal power?

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What kind of power might a local community use to influence a company's decisions?

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Corporations that run their operations according to the stakeholder theory of the firm create value by:

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According to Matt Ridley in the video you watched, cumulative technology is the secret to understandingprogress.

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Which of the following statements is (are) correct about stakeholders' power?

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Business & Society, 16eChapter 1The Corporation and Its Stakeholders1) Amazon has been called "Earth's biggest store."2) A business is any organization that is engaged in making a product or providing a service for aprofit.3) Businesses and society are independent of one another.4) The stakeholder theory of the firm argues that a firm's sole purpose is to create value for itsshareholders.5) Theinstrumental argumentfor the stakeholder theory of the firm says that companies performbetter if they consider the rights and concerns of multiple groups in society.6) Thenormative argumentfor the stakeholder theory of the firm says that the stakeholder viewis simply a more realistic description of how companies really work.7) Nonmarket stakeholders are those that engage in economic transactions with the company as itcarries out its primary purpose of providing society with goods and services.8) Market stakeholders include nongovernmental organizations and business support groups.9) Government can be considered both a market and nonmarket stakeholder.10) The interests of different stakeholders often coincide.11) Stakeholders involved with one part of a company may have little or no involvement withanother part of the company.12) Some scholars have suggested that managers pay the most attention to stakeholderspossessing the least salience.13) Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriateby the broader society.14) A corporation's investor relations department interacts mainly with shareholders.15) The external environment of business is static.16) Which statement is not correct about the business-society interdependence?A) Business is a part of society.B) Business is separated from the rest of society by clear boundaries.C) Business activities impact other activities in society.D) Actions by governments rarely affect business.

17) According to general systems theory, boundary exchanges are exemplified by which of thefollowing?

Stakeholders are people who have an interest in the success and potential failure of a company. The interest may be internal by owners, management and investors. It can also be external with political and community interests. Stakeholders operate in either the market or non-market environment, meaning an internal stakeholder operates as an internal component of the company and non-market stakeholders operate in an external capacity.

Stakeholder Definition

Stakeholders are individuals, groups, communities or other businesses that have an interest in a company. The interest may be cooperative or adversarial. Usually, those with financial interests are cooperative, working with company leaders to ensure the profitability, growth and overall success of the company.

When a company doesn't do well, internal stakeholders experience financial loss, either on paper or in actuality. Adversarial stakeholders often oppose some initiative the company has and makes its voice heard. While external, non-market stakeholders are not always adversarial, they are usually the group that internal stakeholders need to romance to help facilitate growth in the external marketplace.

Market and Non-Market Activities Difference

The difference between market activities and non-market activities revolves around a financial stake in the company. The internal, market stakeholders are owners, partners, investors and shareholders. They also include employees. This group of internal shareholders has a vested financial interest in the successful implementation of business goals. Lenders and creditors are also considered market stakeholders. All activities are designed to create an economic exchange between the company and consumers.

The non-market stakeholders are based outside of the organization and have no vested financial interest in the company. These stakeholders may be affected by the economic impact of the company's success or failure. These stakeholders include political groups, media outlets, the general public and other businesses. All activities are designed to provide input, facilitate or block the economic exchange between companies and consumers.

Market Activities Example

An example of market activities is when a company opens a new store in a new community. The goal of every internal stakeholder is to build the economic exchange - the sale of goods in the new location. This includes the media campaign and marketing, hiring the right people to manage and work in the location and operations to fulfill merchandise needs. Everyone's role internally is to drive business in, make more sales and increase revenues to make the new location profitable.

When looking at market activities for stakeholders, the driving force is revenue generation. Everything internal stakeholders should focus on is building stronger avenues for more sales or higher dollars per sale. This could be raising pricing, cross and upsells or even cost cutting measures to improve profit margins.

Non-Market Activities Example

Using the non-market example of the company opening a new location in a new community, we can look at the potential activities of external stakeholders. If the store is a tattoo parlor that is located near an elementary school, the non-market stakeholders may be divided in interests. There may be community leaders in business development seeking to diversify the community business model with new types of businesses.

A backlash may happen by the school parents and leaders who are concerned with the proximity and exposure to potentially bad characters. If the community's voice is loud enough in protest and petition, building and business permits may not be issued, preventing the opening of the location. No business wants to face these problems.

Every business leader must balance the needs and desires of market stakeholders with those of non-market stakeholders. Without community support, the ability of internal stakeholders to garner community support becomes difficult. This has a negative effect on economic exchange and company growth.

Which one of the following is considered a nonmarket stakeholder of business?

Which one of the following is considered to be a nonmarket stakeholder of business? Customers.

Which of the following is considered a business stakeholder?

Typical stakeholders are investors, employees, customers, suppliers, communities, governments, or trade associations.

Which of the following are examples of non market stakeholders?

Market stakeholders include employees, suppliers, customers, owners, and competitors. Non-market stakeholders consist of the media, community, government, and societal groups.

Which of the following would generally be considered an external stakeholder government shareholders customers managers?

External stakeholders are groups outside a business or people who don't work inside the business but are affected in some way by the decisions and actions of the business. Examples of external stakeholders are customers, suppliers, creditors, the local community, society, and the government.