What is a primary concern of stakeholders in a business?

Prepare for the GCSE Business Exam with targeted flashcards and multiple choice questions. Get hints and explanations for each question. Excel in your exam!

A primary concern of stakeholders in a business revolves around profit margins because stakeholders, which include shareholders, employees, suppliers, customers, and the community, are all affected by the financial performance of the organization. For shareholders, profit margins indicate the company's profitability and sustainability, influencing their investment decisions. Employees are often concerned about profit margins since they can impact job security, salary increases, and benefits. Suppliers want to ensure the company remains financially viable to maintain ongoing business relationships. Additionally, customers expect the business to be profitable so that it can continue to provide quality products and services. Thus, profit margins serve as a comprehensive indicator of overall business health, affecting various stakeholder interests directly and indirectly.

Other options, while important in their own right, do not encapsulate the broader financial concerns that directly relate to the interests and investments of the stakeholders in the same way that profit margins do.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy