Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is the primary characteristic of connected stakeholders?

They invest in the company.
They work within the organization.
They have no financial interest in the company.
They create public opinion about the organization.

The correct answer is: They invest in the company.

The primary characteristic of connected stakeholders is that they invest in the company. Connected stakeholders typically include individuals or entities that have a financial or business interest in the organization, such as investors, shareholders, and business partners. Their investments often influence their level of engagement and interest in the company’s performance, strategies, and outcomes, making them integral to the organization’s success. While working within the organization indicates a level of direct involvement, it doesn’t necessarily imply a financial stake. Similarly, stakeholders with no financial interest, while they may still have opinions or influence, do not typically fall into the category of connected stakeholders, as this term emphasizes a relationship defined by investment. Lastly, those who create public opinion may impact the organization’s reputation but are not classified as connected stakeholders since their relationship does not revolve around investment or financial participation.