What characterizes external stakeholders?

Prepare for the Business Admin Knowledge Level 3 Test. Utilize multiple choice questions and helpful insights to strengthen your understanding of core business admin concepts. Excel in your examination!

External stakeholders are characterized by the fact that they are not directly employed by the organization. This group includes individuals or entities that have an interest or investment in the organization's performance and outcomes, but they do not work within the company's internal structure. Examples of external stakeholders include customers, suppliers, investors, community members, and regulatory agencies. These stakeholders can influence the organization through their interactions, purchasing decisions, or regulatory requirements, but they do not have a direct role in internal operations or employee hierarchies.

While other options touch upon various aspects of stakeholders, they do not accurately define the distinguishing feature of external stakeholders. For instance, working within the organization pertains to internal stakeholders, financial stakes apply to a narrower context, and dictating internal policies is typically a function of management or internal stakeholders rather than external ones.

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