Which of the following is an external stakeholder?

• A. Government
• B. Managers
• C. Customers
• D. Internal teams

Answer: (C)

External stakeholders are people or groups outside a business who are affected by its actions or can affect its success. Customers fit this because they are outside the organization and rely on its products or services. Their needs, satisfaction, and buying decisions influence what the business offers, how it prices, and how it markets itself. Managers and internal teams are inside the organization and work within its structures, so they’re internal stakeholders. While government is also outside the business in many contexts, the example that best represents an external stakeholder in everyday operations among the options is the customers.