Question

The government of Canada recently sold off its remaining shares in Petro Canada. The government, in performing this transaction, is acting as which type of stakeholder?

a) Internal stakeholder
b) External stakeholder
c) Primary stakeholder
d) Secondary stakeholder

Answer 1

The government of Canada, by selling its shares in Petro Canada, is acting as a secondary stakeholder, indicating a non-core involvement with the company's daily operations.

Step-by-step explanation:

When the government of Canada sells off its remaining shares in Petro Canada, it is acting as a secondary stakeholder. Secondary stakeholders are those who influence or affect, or are influenced or affected by, the organization but are not engaged in its core activities. In this case, the government's role as shareholder means their involvement is not part of the day-to-day operations of Petro Canada, making their stake in the company a secondary interest.