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Practice ACCA ACCA BT — Business & Technology Practice Exam 1Question 01

Medium2 marksMultiple Choice

Syllabus A: The business organisation and its external environmentSection ASyllabus AStakeholders

ACCA · Question 01 · Syllabus A: The business organisation and its external environment

A highly vocal but underfunded local community group is actively opposing the construction of a new lithium extraction facility by TerraMin PLC. According to Mendelow's Stakeholder Matrix, how should TerraMin PLC classify and manage this community group?

Answer options:

Minimal effort

Keep informed

Keep satisfied

Key players

How to approach this question

Assess the stakeholder's power (funding/influence) and interest (vocal opposition). Map these two variables onto Mendelow's matrix.

Full Answer

B.Keep informed✓ Correct

Mendelow's matrix categorizes stakeholders based on Power and Interest. High Interest + Low Power = Keep Informed. If ignored, they might lobby a high-power group (like the government) to act on their behalf.

Common mistakes

Students often confuse 'Keep informed' with 'Minimal effort' because the group lacks funding.

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52 questions · hints · full answers · grading

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