1.2 Stakeholders and their decision needs Flashcards
- state the stakeholders that businesses deal with and the decision that stakeholders might make by using a business accounting information
Owners
Whether to continue to invest in the business or sell the business, depending on the risks and returns related to the business
Managers
Consider ways to improve the performance of the business
Employees
Whether to continue working in the business
Lenders
Whether to grant loans to the business, depending on the business ability to repay the loan principle and pay interest
Suppliers
Whether to sell to the business on credit, depending on its ability to pay
Customers
Whether to buy from the business, depending on the business’ ability to provide the goods and/or services that they need and good after-sales service
Government
Decide the amount of tax to collect from the business
Competitors
Whether they are comparable to the business and consider how to improve their own performance
