Question:
Which stakeholder is NOT listed as fundamental to the survival of a business?
Which stakeholder is NOT listed as fundamental to the survival of a business?
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Remember: Stakeholders you need (customers, employees, community) are fundamental. Stakeholders you fight against (competitors) are not.
Updated On: Jun 25, 2026
- Customers
- Employees
- Local residents
- Competitors
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The Correct Option is D
Solution and Explanation
Step 1: Concept
Stakeholders are individuals or groups who have an interest in or are affected by the activities of a business. Some are vital for the business's day-to-day survival.
Step 2: Meaning
Fundamental stakeholders provide essential resources or support (like capital, labor, or revenue) without which the business would cease to exist.
Step 3: Analysis
• Customers are fundamental because they generate revenue by purchasing goods or services.
• Employees are fundamental because they provide the labor and skills necessary to operate the business.
• Local residents (society/community) are fundamental as they provide the social license to operate and essential local infrastructure.
• Competitors are market rivals. While they influence strategy, a business does not depend on its competitors for its own survival or support.
Step 4: Conclusion
Competitors are external market forces, not supportive stakeholders fundamental to a firm's survival.
Final Answer: (D)
Stakeholders are individuals or groups who have an interest in or are affected by the activities of a business. Some are vital for the business's day-to-day survival.
Step 2: Meaning
Fundamental stakeholders provide essential resources or support (like capital, labor, or revenue) without which the business would cease to exist.
Step 3: Analysis
• Customers are fundamental because they generate revenue by purchasing goods or services.
• Employees are fundamental because they provide the labor and skills necessary to operate the business.
• Local residents (society/community) are fundamental as they provide the social license to operate and essential local infrastructure.
• Competitors are market rivals. While they influence strategy, a business does not depend on its competitors for its own survival or support.
Step 4: Conclusion
Competitors are external market forces, not supportive stakeholders fundamental to a firm's survival.
Final Answer: (D)
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