Last Updated on November 4, 2026 by sanjjeett
Practice Stakeholders in Commercial Organisations MCQs for ICSE Class 10 Commercial Studies with answers and explanations. This set covers the meaning of stakeholders, internal and external stakeholders, their differences, and the expectations of employers, employees, creditors, suppliers, government and society. The questions include direct concept checks, statement-based items, assertion–reason questions and business situations for competency-based practice.
Stakeholders in Commercial Organisations
Correct Answer: B. A stakeholder is any individual or group that has an interest in the organisation or may affect or be affected by its activities and decisions.
Correct Answer: C. Shareholders are internal stakeholders because they are owners of the company and have a direct financial interest in its performance.
Correct Answer: B. Employees contribute their time, labour, knowledge and skills to the organisation and expect fair compensation, security and suitable working conditions.
Correct Answer: D. Creditors are external stakeholders because they provide loans or credit to the organisation but are not part of its internal management or workforce.
Correct Answer: A. Suppliers provide the goods, materials, equipment or services a commercial organisation needs for its operations.
Correct Answer: C. Government is an external stakeholder that regulates businesses, imposes taxes and expects organisations to follow applicable laws and regulations.
Correct Answer: C. Society is an external stakeholder because business activities affect the community, employment, environment and wider social welfare.
Correct Answer: A. Internal stakeholders such as shareholders, employers and employees have a direct relationship with the organisation. External stakeholders such as suppliers, creditors, government and society remain outside the organisation.
Correct Answer: B. Employers, owners and managers expect the organisation to operate efficiently, earn reasonable profits and build a strong reputation for long-term growth.
Correct Answer: B. Employees expect fair wages, stable employment, opportunities for training and promotion, and healthy and safe working conditions.
Correct Answer: C. Creditors provide loans or credit and therefore expect responsible use of borrowed funds and regular payment of interest and instalments.
Correct Answer: B. Suppliers expect reasonable purchasing terms, prompt payment, transparent communication and long-term mutually beneficial business relationships.
Correct Answer: C. Government expects businesses to comply with laws, meet tax obligations and contribute responsibly to economic and social development.
Correct Answer: C. Society expects businesses to create employment, act ethically, support community welfare and reduce environmental harm.
I. Creditors expect truthful disclosure of the organisation’s financial position.
II. Suppliers expect timely payment and clear communication about orders and policies.
Correct Answer: A. Creditors need reliable financial information to judge repayment ability, while suppliers need clear communication and timely settlement to maintain a smooth business relationship.
Correct Answer: B. Employees expect healthy and secure working conditions. Failure to maintain workplace safety directly violates this expectation.
Correct Answer: C. Creditors expect borrowed funds to be used responsibly and expect regular payment of interest and instalments according to the borrowing terms.
Statement I: Shareholders are internal stakeholders because they have an ownership interest in the organisation.
Statement II: Government is an internal stakeholder because it regulates the organisation.
Correct Answer: C. Shareholders are internal stakeholders. Government is an external stakeholder: it regulates the organisation from outside rather than forming part of its internal structure.
Reason (R): Suppliers depend on payment for goods or services supplied and prefer stable, transparent business relationships.
Correct Answer: A. Both statements are true. Timely payment is a major supplier expectation because suppliers need reliable settlement and transparent dealings to maintain a healthy long-term relationship with the buyer.
1. Pays employees fairly and provides training opportunities.
2. Pays creditors on time and discloses its financial position honestly.
3. Reduces pollution and supports community development.
4. Pays taxes and follows applicable laws.
Which option correctly identifies the stakeholder groups whose expectations are being met?
Correct Answer: C. Fair pay and training meet employee expectations; repayment and truthful disclosure meet creditor expectations; pollution control and community development meet society’s expectations; and payment of taxes and legal compliance meet government’s expectations.
Frequently Asked Questions
Which stakeholders are internal in the ICSE Class 10 syllabus?
The prescribed internal stakeholders are Shareholder, Employer and Employee.
Which stakeholders are external in the ICSE Class 10 syllabus?
The prescribed external stakeholders are Supplier, Creditor, Government and Society.
Are answers and explanations provided for every MCQ?
Yes. Use the View Answer & Explanation control below each question to reveal the correct option and its explanation.