Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which term describes individuals or groups interested in what an organization does?

1. Actuaries

2. Stakeholders

3. Beneficiaries

4. Competitors

The correct answer is: Stakeholders

The term that describes individuals or groups interested in what an organization does is "stakeholders." Stakeholders encompass a wide variety of entities, including employees, customers, suppliers, investors, communities, and regulators, all of whom have an interest in the organization's activities and its overall success. Their interests can be financial, social, ethical, or personal, making them integral to the organization's operations and decision-making processes. This concept is crucial in understanding how organizations function within a broader context. Stakeholders can influence, and are influenced by, the organization's strategies and outcomes. Thus, effectively managing stakeholder relationships is vital for sustaining long-term success. In contrast, the other terms do not encompass this broad interest in organizational activities. Actuaries focus on financial risk assessment, beneficiaries are those who receive benefits from an organization, and competitors aim to outperform the organization in the same industry, lacking the direct interest in the organization's overall operations.