Question

Which one of the following business stakeholder groups can exert pressure on a business by imposing stricter credit terms, or by refusing to grant further credit?

A. D suppliers B. customers C. shareholders D. pressure groups

Answer 1

A. D suppliers

Step-by-step explanation:

Suppliers are traders who sell materials and other items to a business. Suppliers are stakeholders in any company that they supplier products or services. They have commercial interests as creditors to the company.

Because suppliers are the one's who sell to a business of credit, they are the only ones who can impose credit terms on the business. Suppliers may also relax the credit terms or deny the business credit facilities depending on their risk assessment of the company.