PRC-3 · Chapter 1 · Question 26 of 61
A major institutional shareholder owns 40% of Alpha Ltd but explicitly chooses to remain passive and shows very little interest in the company's daily strategic decisions. According to Mendelow's Matrix, how should management treat this stakeholder?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Keep satisfied
Explanation
Stakeholders with high power but low interest should be 'kept satisfied'. They must be treated well so they do not suddenly use their power against the firm.
More Nature of Business MCQs
- Q28A newly formed tech startup publishes a document stating: 'We exist to empower small businesses by providing affordable, easy-to-use…
- Q29The Red Cross provides emergency medical relief during natural disasters. While they handle millions of dollars, what differentiates their…
- Q30Ms. Fatima noticed a gap in the market for organic pet food. She took out a bank loan, rented a factory, hired workers, and started…
- Q31A raw material supplier relies entirely on continuous orders from a single large furniture manufacturer. Based on stakeholder…
- Q32Why is the federal tax authority classified as an 'external' stakeholder rather than a 'connected' stakeholder to a private business?
