Question：Janet works for a toy company called K Co. She telephones Mary at P Co on a daily basis to order parts. Janet has no contact with customers but does deal with complaint letters from D Group, an organisation against slave labour. D Group believe that K Co use slave labour in the toy manufacturing factories.
Which of the following are internal stakeholders of K Co?
A. Janet only
B. Janet and Mary at P Co
C. Janet and D Group
D. Janet, Mary and D Group
The correct answer is: Janet only
Rationale: Internal stakeholders include employees and management and so Janet is the only internal stakeholder. Customers and suppliers (like Mary at P Co) are connected stakeholders. Pressure groups such as D Group are external stakeholders.
Question：Corporate governance is essentially of what significance?
A. Strategic importance
B. All of the above
C. Risk management
D. Control system
The correct answer is: Strategic importance
Rationale: Corporate governance includes the selection of senior officers (with influence over the future direction of the organisation), and relationships between the organisation and its key stakeholders. It is therefore regarded as being of strategic importance.