National Association of Boards of Long Term Care Administrator (NAB) CORE Practice Exam

Stakeholders in an organization are defined as:

1. Individuals closely monitoring the organization's expenditures

2. Any constituent group interested in the organization's outcomes

3. Investors who directly own shares

4. Staff and local supporters of the organization

The correct answer is: Any constituent group interested in the organization's outcomes

Stakeholders in an organization refer to any constituent group that has an interest in the organization’s outcomes. This definition encompasses a wide array of individuals and groups, such as employees, customers, suppliers, investors, community members, and regulatory bodies, all of whom may be affected by or have an effect on the organization’s actions and policies. Understanding stakeholders as any group interested in the outcomes highlights the diverse relationships and interactions that organizations must manage. Each stakeholder group can have varying levels of influence and interest, which can impact decision-making and strategies within the organization. Recognizing this broad definition helps administrators engage effectively with all relevant parties to ensure that the organization operates in a manner that considers the needs and perspectives of its various stakeholders. The other options suggest narrower definitions of stakeholders, focusing on specific groups, rather than acknowledging the comprehensive nature of stakeholder relationships within an organization. This broader understanding is essential for effective governance and successful operational strategies in long-term care and other sectors.