Which option is a primary stakeholder?

• A. General public
• B. Regulatory bodies
• C. Shareholders
• D. HMRC

Answer: (C)

The main idea is identifying who counts as a primary stakeholder—groups with a direct, financial or essential stake in the business and whose ongoing support is necessary for the business to operate. Shareholders fit this role because they own the company and provide the capital that funds operations; the business depends on their investment and on delivering value to them. The general public, while affected by the business’s actions, is not directly invested or required for daily operation, so they’re considered a secondary stakeholder. Regulatory bodies and HMRC are external authorities that regulate and tax the business; they influence how the business must behave, but they don’t have the same direct financial stake as shareholders.