Class 10 Stakeholders in Commercial Organisations Mock Test (ICSE)

Topics in Stakeholders in Commercial Organisations

• Internal and external stakeholders
• Expectations of stakeholders
• Responsibilities towards stakeholders
• Conflict among stakeholders

Stakeholders in Commercial Organisations practice questions with answers

1. Q1Multiple choice·1 mark
   Which of the following represents the primary expectation of creditors or lenders from a commercial organisation?

   1. (a)Provision of fair wages and safe working conditions
   2. (b)Provision of high dividends and capital appreciation
   3. (c)Timely payment of interest and safe return of the principal amount
   4. (d)Payment of corporate taxes and compliance with laws
   Show answer and step marks

   1. Correct option: (c) Timely payment of interest and safe return of the principal amount+1

   Answer: (c)
2. Q2Multiple choice·1 mark
   Which of the following best describes the primary social and economic responsibility of a commercial organisation towards its consumers?

   1. (a)Reinvesting profits solely into capital expansion
   2. (b)Payment of regular corporate taxes and duties
   3. (c)Providing safe, high-quality goods and services at fair prices
   4. (d)Ensuring fair wages and healthy working conditions
   Show answer and step marks

   1. Correct option: (c) Providing safe, high-quality goods and services at fair prices+1

   Answer: (c)
3. Q3Multiple choice·1 mark
   Which of the following is classified as an external stakeholder of a commercial organisation?

   1. (a)Employees
   2. (b)Managing Director
   3. (c)Board of Directors
   4. (d)Creditors
   Show answer and step marks

   1. Correct option: (d) Creditors+1

   Answer: (d)
4. Q4Short answer·2 marks
   Distinguish between internal stakeholders and external stakeholders of a commercial organisation by giving one suitable example for each.
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   1. Distinction: internal stakeholders are within the organisation (they work in it or own it), whereas external stakeholders are outside it but affect or are affected by its activities.+1
   2. Example of an internal stakeholder, any one of: employees (workers); managers; owners or shareholders; the board of directors; or any other valid internal stakeholder.+0.5
   3. Example of an external stakeholder, any one of: customers; suppliers; creditors or lenders such as banks; the government; the local community or society; or any other valid external stakeholder.+0.5

   Answer: Internal stakeholders are within the organisation: they work in it or own it (e.g. employees, managers, owners); external stakeholders are outside it but affect or are affected by it (e.g. customers, suppliers, creditors, government).
5. Q5Short answer·2 marks
   Distinguish between internal stakeholders and external stakeholders by providing one suitable example for each.
   Show answer and step marks

   1. Distinction: internal stakeholders operate within the organisation (they work in it or own it), whereas external stakeholders are outside parties who affect or are affected by its activities.+1
   2. Example of an internal stakeholder, any one of: employees (workers); managers; owners or shareholders; the board of directors; or any other valid internal stakeholder.+0.5
   3. Example of an external stakeholder, any one of: customers; suppliers; creditors or lenders such as banks; the government; the local community or society; or any other valid external stakeholder.+0.5

   Answer: Internal stakeholders are within the business (e.g. employees, managers, owners); external stakeholders are outside parties affected by or affecting it (e.g. customers, suppliers, creditors, government).
6. Q6Long answer·4 marks
   Explain any four major expectations that employees have from a commercial organisation.
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   1. First expectation explained, any one of: fair and adequate wages commensurate with their skill and effort; job security; safe, clean and healthy working conditions; opportunities for training, career growth and promotion; social security benefits such as provident fund, gratuity, pension and medical insurance; welfare facilities such as canteen, housing and transport; recognition and respectful treatment without discrimination; participation in management decisions that affect them; or any other valid expectation.+1
   2. Second expectation explained, a different one from the same list.+1
   3. Third expectation explained, a different one from the same list.+1
   4. Fourth expectation explained, a different one from the same list.+1

   Answer: Any four of: fair and adequate wages; job security; safe and healthy working conditions; training, growth and promotion opportunities; social security benefits (provident fund, gratuity, pension, medical cover); welfare facilities; recognition and fair treatment; participation in management, each briefly explained.

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