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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?

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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.

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