External stakeholders include which group?

• A. Employees
• B. Customers
• C. Owners
• D. Directors

Answer: (B)

External stakeholders are groups outside the business that have an interest in its activities and outcomes. Customers fit this because they are outside the organization but interact with it by buying products or services; their needs and satisfaction influence what the business offers, the quality and price of its goods, and how it carries out service. The other groups are internal stakeholders: employees are part of the organization and are affected by decisions through pay and working conditions; owners (shareholders) have a financial stake but are part of the ownership structure, and directors are involved in governance within the company. So, among the options, customers are the external stakeholder group.