Multiple Choice
A mission statement describes the organization's:
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1. Introduction to Accounting
Business Organization
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Which of the following is NOT considered an external stakeholder of a business organization?
A
Government agencies
B
Employees
C
Customers
D
Suppliers
Verified step by step guidance1
Understand the concept of external stakeholders: External stakeholders are individuals or entities outside the organization that are affected by or have an interest in the organization's activities. Examples include customers, suppliers, government agencies, and the community.
Contrast external stakeholders with internal stakeholders: Internal stakeholders are individuals or groups within the organization, such as employees, managers, and shareholders, who are directly involved in the organization's operations.
Analyze the options provided: Government agencies, customers, and suppliers are external stakeholders because they are outside the organization and interact with it in various ways (e.g., regulatory compliance, purchasing goods/services, or providing resources).
Identify the exception: Employees are internal stakeholders because they work within the organization and contribute directly to its operations and success.
Conclude that the correct answer is 'Employees,' as they are not considered external stakeholders of a business organization.
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