stakeholders

• What are stakeholders in a business context?

  Groups or individuals affected by decisions
• Why are stakeholders interested in a company's financial statements?

  They need insights for decision-making
• What are the two major categories of stakeholders?

  • Internal stakeholders
  • External stakeholders
• Who are considered internal stakeholders?

  People part of the Enterprise itself
• Who are the internal stakeholders mentioned in the material?

  Owners, managers, and employees
• Why is understanding financial statements crucial for shareholders?

  To decide on investing more or pulling back
• What do financial statements provide to managers?

  Data needed for day-to-day operations
• Why do employees have a vested interest in financial statements?

  For pay raises, bonuses, and job security
• How do financial statements affect lenders?

  They show the capacity to repay loans
• Why does the government need financial statements?

  To assess taxes owed by the Enterprise
• How do customers use financial statements?

  To assess a company's long-term viability
• Why do suppliers need financial statements?

  To evaluate if a business can pay for goods
• What are the specific needs of different stakeholders regarding financial statements?

  • Owners: Decide on investment strategies
  • Managers: Make operational decisions
  • Employees: Negotiate pay and assess job security
  • Lenders: Evaluate loan repayment capacity
  • Government: Calculate taxes owed
  • Customers: Determine long-term viability
  • Suppliers: Assess payment capability
• What is the role of financial statements for owners?

  To decide whether to invest or divest
• What do managers rely on financial statements for?

  Day-to-day operational decisions
• What do employees assess using financial statements?

  Job security and pay raises
• What do lenders want to see in financial statements?

  Financial capacity to repay loans
• What does the government use financial statements for?

  To assess taxes owed by the Enterprise
• Why do customers review financial statements?

  To decide on brand loyalty
• What do suppliers evaluate using financial statements?

  Whether a business can pay its bills