The First Step in Stakeholder Impact Analysis Involves

question 14

Multiple Choice

The first step in stakeholder impact analysis involves

• A) formulating a stakeholder strategy to balance the different needs of various stakeholders.
• B) identifying the opportunities and threats the stakeholders present.
• C) describing the economic, legal, ethical, and philanthropic responsibilities of the firm toward the society.
• D) identifying the stakeholders that currently have, or potentially can have, a material effect on a company.

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Definitions:

Variable Costs

Charges that directly correlate with the volume of production or sales, such as direct labor and materials required for production.

Fixed Costs

These are business expenses that remain the same regardless of the level of production or sales, such as rent or salaries.

Break-Even Point

The level of sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Variable Costs

Expenses that fluctuate in direct proportion to changes in levels of production or sales, such as materials and labor.