Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which described group engages in direct financial dealings with the organization?

1. Internal stakeholders

2. Connected stakeholders

3. External stakeholders

4. Political stakeholders

The correct answer is: Connected stakeholders

The group that engages in direct financial dealings with the organization is accurately identified as connected stakeholders. Connected stakeholders are those whose financial interests are directly linked to the organization, meaning they may include investors, creditors, suppliers, and customers. These stakeholders have a material impact on the organization's financial health and performance, as their transactions and relationships involve the exchange of funds, credit, or other financial resources. For example, investors provide capital in exchange for ownership stakes, while suppliers may extend credit terms that enable the organization to manage cash flow. This direct financial relationship is essential for the organization’s operational and strategic decisions, and it influences how the organization approaches risk, investment, and financial planning. In contrast, internal stakeholders, while they may influence or be affected by financial decisions, do not directly engage in financial transactions with the organization. External stakeholders, such as the community or regulatory bodies, generally do not have direct financial ties. Political stakeholders may have an interest in the organization’s operations, particularly regarding compliance and regulations, but they do not directly engage in financial dealings. Thus, the clear distinction of connected stakeholders engaging directly in financial dealings makes this choice the most accurate.