Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which group is considered an internal stakeholder?

1. Customers

2. Suppliers

3. Managers

4. Shareholders

The correct answer is: Managers

Managers are considered internal stakeholders because they are directly involved in the operations and decision-making processes of an organization. Internal stakeholders are those individuals or groups that are within the organization and have a vested interest in its performance and success. Managers play a crucial role in strategic planning, resource allocation, and overseeing the daily functions of the business, making their interests aligned with the organization's objectives. Other groups listed, such as customers and suppliers, are external stakeholders. Customers have an interest in the products or services offered by the organization but are not directly involved in its internal operations. Suppliers are also external, providing goods and services but not participating in the organization's management or internal decision-making processes. Shareholders, while often considered part of the internal environment because they own parts of the company, are not involved in the day-to-day operations and generally influence the company through their voting rights and capital investment, making them more of an external stakeholder group. Thus, managers stand out as the clear choice for internal stakeholders based on their functional roles within the organization.